Agenda — Richmond City Council, December 5, 2023 (part 4 of 4)

36 Homeless Task Force monthly
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37 Housing Advisory Commission monthly
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38 Housing Authority Board of Commissioners one to three times per month City Manager's Office
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39 Human Rights and Human Relations Commission monthly
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40 Juneteenth Planning Committee monthly as needed Police 41 League of California Cities East Bay quarterly
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42 Library Commission bi-monthly Community Services
43 Library Foundation monthly Community Services
44 Literacy Day Event Committee monthly Community Services 45 Local Children's Funding Project monthly Department of Children and Youth 46 Marina District meetings monthly Public Works
47 Mayors Conference monthly
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48 MCE Clean Energy City Manager's Office, Economic Development 49 National Night Out planning committee as needed
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50 Neighborhood Council (individual) meetings weekly
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51 North Richmond Earth Day Committee as needed Community Services 52 North Richmond Green as needed Community Services
53 North Richmond Mitigation Fee Committee as needed (semi-annually) Community Services 54 North Richmond Municipal Advisory Committee as needed Community Services 55 Nystrom United Revitalization Effort (NURVE) Policy Ad-Hoc Committeequarterly Community Services 56 Paratransit Coordinating Committee monthly Community Services 57 Parking Legislative meeting as needed Community Services 58 Personnel Board monthly Human Resources
59 Planning Commission bi-weekly Community Development
60 Police & Fireman's Pension Board as needed City Clerk's Office 61 Public Management Association monthly
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62 Recreation and Parks Commission monthly
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63 RecycleMore regional staff meetings monthly City Manager's Office, Economic Development 64 Regional Park and Recreation Group monthly Community Services 65 Reimagining Public Safety Community Task Force monthly Community Services
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66 Republic Services/ City of Richmond meetings monthly City Manager's Office, Economic Development
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67 Richmond Friends of Recreation bi-monthly Community Services 68 Richmond Fund for Children and Youth Oversight Board monthly Department of Children and Youth 69 Richmond Funders Forum bi-monthly Department of Children and Youth 70 Richmond Housing Authority Corporation quarterly
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71 Richmond Neighborhood Coordinating Council
Executive board monthly
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72 Richmond Police Activities League (RPAL) Little League Boardmonthly Community Services 73 Richmond Promise monthly City Manager's Office
74 Richmond Rent Board monthly Rent Program
75 Richmond Repositioning and Transfer Discussion (PHARS) bi-weekly Finance
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76 Richmond Swims as needed Community Services
77 Richmond Tennis Association monthly Community Services 78 Safety Committee Meetings monthly
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79 Shimada Friendship Commission monthly City Council Office 80 Southside + 1 Neighborhood Council bi-monthly Community Services 81 Statewide Illegal Dumping Prevention Technical Advisory Committeequarterly City Manager's Office, Economic Development 82 Trails for Richmond Action Committee (TRAC) as needed Community Services
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83 Transformative Climate Communities (TCC) Committee monthly City Manager's Office, Economic Development
Community Development
Community Services
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84 Unhoused Interdepartmental Team monthly
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Police
85 Urban Forest Advisory Committee monthly Public Works 86 West Contra Costa Integrated Waste Management Authority (RecycleMore)monthly City Manager's Office, Economic Development 87 West Contra Costa Transportation Advisory Committee (WCCTAC) (staff and board meetings)monthly Community Services 88 West Contra Costa Unified School District (WCCUSD) Community Schools Support Collaborativemonthly Community Services 89 West County Agency (JPA between Richmond and West County Wastewater District) Public Works 90 West County Mayors and Supervisors monthly
City Manager's Office
Management Leadership Team as needed
91 West County Wastewater District quarterly Public Works 92 Workforce Development Board bi-monthly Community Services 93 Youth Council as needed City Council Office
94 Zhoushan Friendship Commission monthly City Council Office

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December 5, 2023

Community Development

DATE: December 5, 2023
TO: Mayor Martinez and Members of the City Council
FROM:

Lina Velasco, Director of Community Development
Nannette Beacham, Director of Economic Development
Lizeht Zepeda, Sr. Business Assistance Officer
Subject:

Cannabis Ordinance Amendments
FINANCIAL IMPACT: The Economic Development Department received a cannabis equity grant from California Go-Biz to aid local equity program efforts to support equity applicants and equity licensees, including these proposed ordinance
amendments. This grant supported the City’s Economic
Development Department in offering technical assistance and training necessary to begin a business, which are
often barriers to entry into the regulated cannabis
industry for equity applicants.

PREVIOUS COUNCIL
ACTION:

December 20, 2022

STATEMENT OF THE
ISSUE:

During the past year, City staff has collaborated with the Economic Development Commission and SCI Consulting
Group to implement the City's Cannabis Equity Program,
which includes evaluating increasing the maximum
number of cannabis retailer permits available in the City.

City staff has prepared amendments to Richmond
Municipal Code (RMC) Section 15.04.610.270 that
include increasing the number of storefront retail permits and adding new non-storefront retail (delivery only)
permits, with a certain amount of the new retailer permits to be reserved for equity applicants. Additional
amendments proposed include updating definitions,
AGENDA
REPORT
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December 5, 2023
clarifying requirements around Cannabis Business
Permits, and related amendments to clarify regulations.

RECOMMENDED ACTION:

HOLD a Public Hearing; and INTRODUCE (first reading)
an ordinance making certain amendments to Richmond
Municipal Code (RMC) Section 15.04.610.270
Marijuana/Cannabis Commercial Uses, that includes, but
is not limited to, increasing the number of storefront retail permits and adding new non-storefront retail (delivery
only) permits, with a certain amount of the new retailer licenses to be reserved for equity applicants –
Community Development Department (Lina Velasco 510-
620-6841).

DISCUSSION:

Background

On December 20, 2022, the City Attorney's Office and staff brought forth an item to the City Council regarding a former cannabis dispensary license holder's request to amend the City’s Cannabis Ordinance (Richmond Municipal Code Section 15.04.610.270). The requestor sought City action to issue an additional cannabis retailer license within the City of Richmond. In response, the City Council passed a motion, instructing staff to collaborate with the Economic Development Commission to conduct research on expanding the number of cannabis retail locations in the City.

Furthermore, the City Council had previously worked with staff to develop a Cannabis Equity Program (CEP) that prioritizes granting new cannabis retailer licenses to equity candidates. The Economic Development Department secured state grant funding to establish the CEP, aimed at assisting individuals impacted by past cannabis criminalization in owning and operating cannabis businesses. However, to fully implement the CEP, the City Council needs to determine and set the maximum number of retailer licenses allowed in the City.

As per the Council's directive, staff members have been working on updating the City's regulations pertaining to medicinal and adult-use commercial cannabis activities, with the goal of increasing the total number of cannabis retailers. On April 12, 2023, staff presented their findings to the Economic Development Commission, gathering feedback and recommendations on expanding the number of cannabis retail establishments in the City. Additionally, staff is proposing further amendments to enhance and clarify the City's permitting process for commercial cannabis businesses.

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Retail Expansion Options:

On April 12, 2023, staff presented research findings to the Economic Development Commission, exploring the feasibility of adding more retail cannabis stores. The analysis involved studying comparable and neighboring jurisdictions while assessing the current state of the retail cannabis industry within the City.

Determining the precise number of cannabis retail locations that a jurisdiction can support is challenging due to varying factors between different areas. There is no one- size-fits-all metric for determining the optimal number of cannabis retail locations a jurisdiction can sustain. Nevertheless, the staff examined the following three potential metrics as a starting point:

1. The City's population size or density;

2. Competition from surrounding cities and counties; and

3. Consumer demand for cannabis products in the area.

Population Density:

Population density is a common way to estimate the number of cannabis retail locations that a jurisdiction can sustain. The standard metric commonly used is to have one retail location for every 15,000 to 20,000 people. In the case of the City of Richmond, it currently has three retail locations serving a population of approximately 116,000 people, which translates to about 38,000 people per retailer. Based on this calculation, Richmond can support an additional 3-5 retail locations, for a total of 6-8 retailers.

The following table compares the capacity of nearby communities to support cannabis retailers based on their population, using a standard market density of one retailer per 20,000 residents. The City of Richmond ranks second, closely following the City of Hayward, with a combined population per retailer of 38,000 people and an unmet capacity for three retail businesses. Alameda, Concord, and Martinez align closely with the standard metric, whereas Oakland, El Cerrito, and the remaining cities all exceed the standard market density.

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Competition and Consumer Demand:

The number of additional cannabis retailers that the City can accommodate depends on both nearby competition and consumer demand for cannabis products. If there is already a significant concentration of cannabis retail locations in close proximity, it becomes more challenging for new stores to establish themselves. A saturated market can lead to intense competition, resulting in lower profit margins for individual retailers.

Additionally, the level of consumer demand for cannabis products plays a crucial role in determining the City's capacity for supporting additional retailers. Strong demand can create opportunities for new businesses, while weak demand may limit the feasibility of establishing more retailers.

To assess the level of demand for cannabis products in the City, staff analyzed historical sales data from the three existing retailers. The analysis revealed a consistent upward trend in sales from 2016 to 2021. However, in 2022, there was a significant drop in retail sales, and projections for 2023 suggest a continuing downward trend. These findings indicate that the demand for cannabis products may be reaching a saturation point, both in the City and surrounding areas.

Despite the potential market saturation and the decline in overall sales, the current average sales per retailer remain healthy. This suggests that existing retailers are still generating significant revenue per store, even in the face of increased competition. As a result, there may still be financial viability for potential entrepreneurs interested in entering the market by establishing new retail cannabis stores.

City/County Population Total
Retailers
Population
per Retailer
Capacity at 1
per 20,000
Unmet
Capacity
Hayward 159,827 4 39,957 8 4
Richmond 115,639 3 38,546 6 3
Fairfield 119,705 4 29,926 6 2
San Leandro 88,868 3 29,623 4 1
Berkeley 117,145 4 29,286 6 2
Alameda 76,362 3 25,454 4 1
Concord 124,074 5 24,815 6 1
Martinez 36,819 2 18,410 2 0
Oakland* 433,823 27 16,068 22 0
El Cerrito 25,845 2 12,923 1 0
Vallejo 124,886 11 11,353 6 0
El Sobrante 14,779 2 7,390 1 0
Emeryville 12,870 2 6,435 1 0
Pachecho 4,775 2 2,388 0 0
* An additional 11 retailers are conditionally approved, but not yet open; 27 permitted delivery- only businesses
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In summary, the analysis conducted by staff on the cannabis retail market in the City indicates that the area can accommodate an additional 3-5 retail businesses. This estimation is based on considerations of the current population density and the level of nearby competition.

Expansion Scenarios:

During the presentation to the Economic Development Commission, staff outlined three distinct expansion scenarios for consideration. These scenarios encompassed conservative, moderate, and aggressive approaches as described below:

 Conservative:
o Two (2) additional Storefront retail locations (One for equity applicant & One for a non-equity applicant)

 Moderate:
o Three (3) additional Storefront retail locations (Two for equity applicants & One for non-equity applicant)
o Two (2) non-storefront (delivery-only) retail locations (Both for equity applicants)
 Aggressive:
o Four (4) additional Storefront retail locations (Three equity applicants & One for non-equity applicant)
o Two (2) non-storefront (delivery-only) retail locations (Both for equity applicants)

The Economic Development Commission recommended moving forward with the moderate scenario. These scenarios were also presented to the Planning Commission on October 5, 2023, and they also recommended the moderate scenario to City Council.

The proposed Zoning Text Changes reflect this scenario.

Zoning District Where Retailers Are Allowed

The Richmond Zoning Ordinance (Richmond Municipal Code (RMC) Chapter 15.04) currently allows the establishment of new cannabis retailers with a conditional use permit in the Regional Commercial (CR) (and General Commercial (CG) zone, if certain Fiscal Year Gross Receipts Average per Retailer + / -
2016-17 $12,603,620 $4,201,207
2017-18 $13,240,940 $4,413,647 5%
2018-19 $17,897,660 $5,965,887 35%
2019-20 $23,401,040 $7,800,347 31%
2020-21 $34,315,740 $11,438,580 47%
2021-22 $21,618,520 $7,206,173 -37%
2022-23* $14,480,100 $4,826,700
* Tax revenue reported through three quarters
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findings are made, including that no location that met the requirements in Section

15.04.610.270.F in the CR zone were identified). Retailers are also subject to the distance requirements from certain sensitive land uses as specified in RMC Section

15.04.610.270.F.3.

Equity Program Summary

The City of Richmond is committed to identifying social, economic, and health inequities and creating programs and adopting policies to address these inequities. In addition, as demonstrated by the City of Richmond Cannabis Equity Assessment, populations and communities within the City of Richmond have been adversely impacted by the criminalization of cannabis and poverty. As such, the City Council adopted the Cannabis Equity Program Manual. The Manual is designed to foster equitable access and ensure diversity and inclusion in the cannabis industry by reducing the barriers of entry into the commercial cannabis industry for individuals and communities impacted by the disproportionate enforcement of cannabis crimes in Richmond. The manual describes the qualifications for, and services to be provided by, the Richmond Cannabis Equity Program to ensure those served meet the criteria established by the Council to benefit from the program.

Summary of Proposed Ordinance Amendments

The following summarizes the key amendments proposed to RMC Section

15.04.610.270 as specified in Exhibit A to the Resolution in Attachment 1:

1. Definitions (Section 15.04.610.270(B)):
 Add definitions for “Cannabis Equity Program”, “Canopy”, “Cultivator”, “Equity Applicant”, “Equity Business”, “Retailers”, “Storefront Retail Facility”, and “Testers”.

2. Promulgation of Regulations, Standards and Other Legal Duties (Section

15.04.610.270(E)):
 Removed outdated language regarding existing Medicinal Cannabis Businesses
 Added language to empower the Director of Community Development to make certain administrative decisions to support the proper functioning of the local cannabis industry and regulatory oversight.

3. Number of Commercial Cannabis Businesses (Section 15.04.610.270 F(4)):
 Increase the number of cannabis storefront retail permits from three (3) to six (6).
 Add two (2) new non-storefront retail (delivery only) permits.  Designate two (2) storefront retail permits and two (2) new non-storefront retail (delivery only) permits for equity applicants.

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4. Background Investigation of Owners and Managers (Section

15.04.610.270(H)(1)(a)(ii):
 Establish criteria for examining whether the results of the background investigations (LiveScan) can be grounds for denial.

5. Denial, Revocation or Suspension, and Renewal of Conditional Use Permit. (Section 15.04.610.270(H)(5):
 Language added to specify grounds for denial, revocation, suspension, and renewal of Conditional Use Permit (CUP) for cannabis businesses.

6. Cannabis Business Permit (CBP) Application Process (Section 15.04.610.270 (I)(1)):
 Add section requiring businesses to satisfy compliance with the terms and conditions of their CUP prior to the City issuing the Cannabis Business Permit (CBP).

7. Issuance of Cannabis Business Permit (Section 15.04.610.270 (I)(2)):
 Add section that requires approval and signatures from all relevant City departments prior to the City issuing the CBP.

8. Denial of Cannabis Business Permit (Section 15.04.610.270 (I)(4)):
 In order to provide additional enforcement tools, add a section giving the Zoning Administrator discretionary authority for the denial of a CBP.  Establish circumstances that would result in the denial of a CBP.

9. Cannabis Business Permit Annual Renewal. (Section 15.04.610.270 (I)(5)):
 Add section detailing what a cannabis business must submit with their CBP renewal application.
 Add section requiring City inspection 60 days prior to renewal to confirm compliance with local and state regulations and CUP terms and conditions.  Add Section detailing the grounds for rejecting a CBP renewal.

10. Competitive Selection Process. (Section 15.04.610.270 (J)(1)):
 Add language to clarify application procedures and requirements for the Competitive Selection Process.

11. Consent to Inspection. (Section 15.04.610.270 (K)(1)(j)):
 Strengthen language in this section to authorize City inspections.

Public Comments:

The public comments submitted to the City Council regarding the proposed amendments to Richmond Municipal Code Section 15.04.610.270 collectively highlight concerns about the potential increase in cannabis retail permits and its impact on the community, particularly on youth. Many express worries about heightened cannabis retail density leading to increased accessibility and usage among adolescents, risking 656

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adverse effects on their health and brain development due to high-THC products.

There's a strong emphasis on the necessity of not only maintaining but enhancing programs focused on youth education and substance abuse prevention, like the Pride & Purpose project. Overall, there's a call for the Council to prioritize public health and safety, urging for comprehensive strategies, stronger regulations, and evidence-based prevention programs to safeguard the well-being of Richmond's younger population while still promoting equitable business opportunities in the cannabis industry.

Upon careful review of the ordinance, staff feels that the existing regulations offer ample safeguards to prevent increased access and usage of cannabis by minors. The ordinance already imposes rigorous constraints on cannabis retailers, mandating strict adherence to both City and State laws governing access and sales. Presently, both City and State regulations prohibit the access, sale, or exchange of cannabis to individuals under 21 years of age, except for qualified patients aged 18 years or older. To reinforce these measures, all customers seeking entry into the retail stores are subject to thorough ID verification by security personnel before gaining access. Additionally, the City has implemented stringent visibility standards for cannabis facilities, explicitly dictating that no cannabis or cannabis products should be visible from the exterior of any property. This provision serves as a preventive measure, aiming to avert the exposure of cannabis to minors or the general public, as the visibility might influence or attract individuals not legally entitled to purchase or consume cannabis.

Moreover, the City's setback requirements exceed those stipulated by the state, thus enhancing protective measures further. While the state mandates a 600-foot distance between cannabis businesses and schools providing instruction in kindergarten or any grades 1 through 12, daycare centers, or youth centers, the City imposes even stricter regulations. It necessitates a minimum distance of 1,500 feet from any public or private high school and a 600-foot buffer from parks and community centers. These collective measures in place align with our commitment to ensuring stringent oversight and regulation within our community regarding cannabis access and visibility for minors.

Staff considered the possibility of introducing extra distancing requirements between cannabis businesses. However, given that these businesses are restricted to operating solely within the Regional Commercial Zoning District (CR) and the General Commercial Zoning District (CG) with approval from the Planning Commission, imposing additional setback regulations would potentially restrict the number of suitable and feasible locations available for these businesses.

RECOMMENDATION BY PLANNING COMMISSION

The proposed zoning text changes were considered by the Planning Commission at a public hearing held on October 5, 2023. The Planning Commission adopted Resolution No. 23-08 recommending adoption of the proposed amendments to the City Council.

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FINDINGS FOR ZONING TEXT CHANGES:

The Richmond Municipal Code requires the City Council to make certain findings as specified in Section 15.04.814.050 when adopting amendments to the Zoning Ordinance. The Ordinance in Attachment 1 provides the required findings with a supporting statement of fact for City Council’s consideration.

GENERAL PLAN CONSISTENCY:

The proposed amendments will assist the City in achieving certain Economic Development and Community Health and Wellness goals, policies, and actions identified in the General Plan. Specifically, a cannabis equity program will support people and communities harmed by cannabis criminalization. These efforts lower barriers to the cannabis industry for those hit hardest by the War on Drugs (see General Plan 2030 Policy ED2.1, Local Employment Base and Policy HW6.6 Local Small Businesses). Staff will continue to seek resources to support equity applicants in direct grants, direct loans, technical assistance to prepare business plan development, business mentoring, assistance securing capital, business needs assessment, direct loans, loan readiness assessment, market assessment, data and research strategies and support, assistance with establishing a legal entity, assistance with criminal records expungement, lease negotiation assistance, small business legal considerations, mentoring, and assistance with general business operations, cannabis-specific regulatory operations, fiscal management, marketing/social media, technical training, employee training, and regulatory compliance.

ENVIRONMENTAL REVIEW:

Pursuant to California Environmental Quality Act (“CEQA”) Guidelines § 15378 and California Public Resources Code § 21065, the proposed ordinance is not a “project” because its adoption is not an activity that has the potential for a direct physical change or reasonably foreseeable indirect physical change in the environment. Accordingly, the proposed ordinance is not subject to CEQA. Even if the proposed ordinance qualified as a “project” subject to CEQA, and pursuant to CEQA Guidelines § 15061(b)(3), there is no possibility that this project will have a significant impact on the physical environment. This proposed ordinance merely amends the Richmond Municipal Code to regulate the future deployment of wireless communications facilities. The proposed ordinance does not directly or indirectly authorize or approve any actual changes in the physical environment. Applications for any new cannabis business or change to an existing cannabis business would be subject to additional environmental review on a case-by-case basis. Accordingly, the proposed ordinance is exempt from CEQA under the general rule.

DOCUMENTS ATTACHED:

Attachment 1 – Draft CC Ordinance
Exhibit A: Proposed Amendments (Redline)
Exhibit A: Proposed Amendments (Clean)
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ATTACHMENT 1

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RICHMOND AMENDING THE RICHMOND MUNICIPAL CODE SECTION 15.04.610.270
(MARIJUANA/CANNABIS: COMMERCIAL USES)

WHEREAS, pursuant to Article XI, section 7 of the California Constitution and sections 36931 et seq. of the California Government Code, the City may make and enforce within its limits all local, police, sanitary and other ordinances and regulations not in conflict with general laws; and

WHEREAS, the general plan is the City’s constitution for future development and any decision by a City affecting land use and development must be consistent with the general plan; and

WHEREAS, on April 24, 2012, the City Council certified the Final Environmental Impact Report for the General Plan and adopted a Mitigation Monitoring and Reporting Program; and

WHEREAS, on April 24, 2012, the City Council adopted the Richmond General Plan 2030; and

WHEREAS, on November 15, 2016, the City Council adopted the Zoning and Subdivision regulations which were updated under comprehensive review and revision in order to ensure that such regulations are consistent with the General Plan and state and federal laws; and

WHEREAS, on December 7, 2021, the City Council adopted Resolution No. 148-21 approving the establishment of a Cannabis Equity Program including a Cannabis Equity Assessment, and a Cannabis Equity Manual; and

WHEREAS, for the past year, staff has been working to implement the City's Cannabis Equity Program; and

WHEREAS, on October 5, 2023, the Planning Commission held a duly and properly noticed public hearing to consider a recommendation to the City Council on the amendments to Section 15.04.610.270 Marijuana/Cannabis Commercial Uses; and

WHEREAS, the Planning Commission considered the agenda report, all public comments, and the amendments to Section 15.04.610.270 Marijuana/Cannabis Commercial Uses, as set forth in Exhibit A of this ordinance and the applicable provisions of the Richmond Municipal Code (“the Record”) and recommended adoption to the City Council of the proposed zoning text amendments; and

WHEREAS, on November 7, 2023, the City Council held a duly and properly noticed public hearing to consider the amendments to Section 15.04.610.270 659
2 of 4
Marijuana/Cannabis Commercial Uses, as set forth in Exhibit A, incorporated herein by reference; and

WHEREAS, the City Council has considered the agenda report, all public comments, and the proposed amendments to Section 15.04.610.270 and the applicable provisions of the Richmond Municipal Code (“the Record”).

WHEREAS, the City Council finds and determines:

1) Pursuant to California Environmental Quality Act (“CEQA”) Guidelines § 15378 and California Public Resources Code § 21065, the amendments to Article

15.04.610 are not a “project” because its adoption is not an activity that has the potential for a direct physical change or reasonably foreseeable indirect physical change in the environment; and

2) Even if the amendments to Article 15.04.610 qualified as a “project” subject to CEQA, and pursuant to CEQA Guidelines § 15061(b)(3), there is no possibility that this project will have a significant impact on the physical environment.

The proposed ordinance merely amends the Richmond Municipal Code to regulate the future establishment of commercial cannabis uses and does not directly or indirectly authorize or approve any actual changes in the physical environment. Applications for any new cannabis business or change to an existing facility would be subject to additional environmental review on a case-by-case basis; and

3) The amendments to Section 15.04.610.270 are consistent with the General Plan; and

Supporting Statement of Fact: The proposed amendments will assist the City in achieving certain Economic Development and Community Health and Wellness goals, policies, and actions identified in the General Plan. Specifically, a cannabis equity program will support people and communities harmed by cannabis criminalization.

These efforts lower barriers to the cannabis industry for those hit hardest by the War on Drugs (see General Plan 2030 Policy ED2.1, Local Employment Base and Policy HW6.6 Local Small Businesses).

4) The amendments to Section 15.04.610.270 are necessary for public health, safety, and general welfare or will be of benefit to the public; and

Supporting Statement of Fact: Certain clarifying amendments will assist in the city in administration of the cannabis ordinance, specifically related to the renewal and denial of cannabis business permits. Having clear regulations assists both applicant, operators, and staff in the administration.

5) The facts set forth in the recitals in this Ordinance are true and correct and incorporated by reference. The recitals constitute findings in this matter and, together with the agenda report, other written reports, public testimony and other information contained in the record, are an adequate and appropriate evidentiary basis for the actions taken in this Ordinance.

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SECTION I. Municipal Code Amendments.

The City Council of the City of Richmond does ordain as follows:

Section 15.04.610.270 of the City of Richmond Municipal Code is hereby amended as shown in Exhibit A attached hereto and incorporated herein by reference.

SECTION II. Severability.

If any section, subsection, paragraph, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be unconstitutional or invalid, the remaining portions of this Ordinance shall remain in full force and effect. The City Council hereby declares that it would have passed each section, subsection, paragraph, sentence, clause or phrase of this Ordinance irrespective of the unconstitutionality or invalidity of any section, subsection, paragraph, sentence, clause or phrase.

SECTION III. Effective Date.

This Ordinance becomes effective thirty (30) days after its final passage and adoption.

-------------------------------------------------

First introduced at a regular meeting of the City Council of the City of Richmond held _______________________ and finally passed and adopted at a regular meeting held _________________________by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

_____________________________

CLERK OF THE CITY OF RICHMOND

(SEAL)

Approved:

______________________
Mayor

Approved as to form:

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______________________
City Attorney

Attachments:

Exhibit A: Proposed Amendments to RMC Section 15.04.610.270 (Clean)

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1 5.04.610.270 Marijuana/Cannabis Commercial Uses
Commercial Cannabis a ctivities, including but not limited to cultivation, manufacturing, testing, distribution, and retail are subject to the standards and procedures of the Municipal Code, State Law, and the regulations set forth in these Zoning Regulations.

A. Applicability. These standards apply to all establishments that are involved in any commercial cannabis activity.

B. Definitions1. The following words or phrases, whenever used in this Section, have the following definitions:

1. A-license. A state license issued for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendations.

2. Attending Physician. An individual who possesses a license in good standing to practice medicine or osteopathy issued by the Medical Board of California or the Osteopathic Medical Board of California and who has taken responsibility for an aspect of the medical care, treatment, diagnosis, counseling, or referral of a patient and who has conducted a medical examination of that patient before recording in the patient's medical record the physician's assessment of whether the patien t has a serious medical condition and whether the medical use of cannabis is appropriate.

3. Bureau of Cannabis Control (“the Bureau”). The bureau within the California Department of Consumer Affairs created to develop, administer and enforce comprehensive r ules for medicinal and adult -use cannabis in California. The Bureau is responsible for the regulation and licensing of all commercial cannabis retail, distribution, testing, microbusinesses and temporary cannabis events in California.

4. California Department of Food and Agriculture - CalCannabis Cultivation Licensing (“the CDFA”). A division of the California Department of Food and Agriculture, responsible for the regulation and licensing of commercial cannabis cultivation in California.

5. California Department of Public Health – Manufactured Cannabis Safety Branch (“the DPH ”). A division of the California Department of Public Health, responsible for the regulation and licensing of all commercial cannabis manufacturing in California.

6. Cannabis . All parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the crude or purified resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature s talks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, 1 Additional terms, such as “applicant” and “person”, “permit” and “use”, are defined in Zoning and Subdivision Regulations, Series 100, General Provisions, and are not repeated here.

EXHIBIT A: PROPOSED AMENDMENTS (REDLINE VERSION)
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2 manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purposes of these zoning regulations, "cannabis" does not include "industrial hemp" as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.

7. Cannabis Business. Establishments, properties, parcels, and/or structures involved in any commercial cannabis activity, including retailers , storefront retailers, non-storefront retailers, cultivators, manufacturers, transporters, testers, and distributors.

8. Cannabis Equity Program. A program established pursuant to resolution adopted on December 7, 2021 that aims to assist individuals negatively impacted by past cannabis criminalization by providing resources and opportunities to facilitate ownership and operation of a cannabis business.

Equity Applicants apply to the program via formal application. The program prioritizes granting new cannabis retailer licenses to Equity Applicants.

8.9. Canna bis Plant . Any immature, flowering, or dried flower in accordance with State Law. Immature cannabis plant means a cannabis plant that has a first true leaf measuring greater than one half inch long from base to tip (if started from seed) or a mass of roots measuring greater than one half inch wide at its widest point (if vegetatively propagated), but which is not flowering.

Flowing cannabis plant means that a cannabis plant has formed a mass of pistils measuring greater than one half inch wide at its w idest point. Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

10. Cannabis Products. Cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

9.11. Canopy. The designated area(s) at a licensed cultivation site that contain mature plants at any point in time.

10.12. Collective. See Retail Facility.

11.13. Commercial Cannabis Activity. The cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of adult-use or medicinal cannabis or cannabis products, as provided for in this Ordinance and in accordance towith State Law.

12.14. Cultivation. Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis within an enclosed structure.

15. Cultivation Site. An in-door location, including greenhouses, where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

13.16. Cultivator . An individual or business that plants, grows, harvest, dries, cures, grades, or trims cannabis within an enclosed structure. 664

3 14.17. Customer . A natural person 21 years of age or older, a natural person 18 years of age or older who poss esses a physician’s recomm endation, or a qualified patient or a primary caregiver.

15.18. Delivery. The commercial transfer of cannabis or cannabis products from a retail or non-storefront retail facility to a customer.

16.19. Dispensary. See Retail Facility.

17.20. Distributor. A person or licensed entity engaged in the business of procuring, selling, storing, packaging, labeling, rolling and transporting cannabis or cannabis products from a licensed cultivator, manufacturer, or from any other State cannabis licensees for sale to any State Cannabis licensee, in accordance with State Law A distributor shall distribute only cannabis goods, cannabis accessories, and licensees’ branded merchandise or promotional materials.

18.21. Distribution . Means the procurement, sale, and transport of cannabis and cannabis products between licensees pursuant to Section 26000 of the California Business and Professions Code.

19.22. Edible Cannabis Product s. Manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the California Food and Agricultural Code.

23. Enclosure . An area fully surrounded by a fence, wall, or other solid barrier that prevents access to cannabis. Enclosures must be equipped with a locked gate or door.

24. Equity Applicant. An individual or business who makes a formal application to be admitted and is accepted into the City’s Cannabis Equity Program.

20.25. Equity Business . A cannabis business with not less than 51% ownership interests held by equity applicants.

21.26. Greenhouse . A building, room, or structure, usually chiefly of transparent material, used for cultivation of cannabis which meets State requirements for mixed-light cultivation.

22.27. Indoor cultivation. The cultivation of cannabis within a permanent structure using exclusively artificial light or within any type of stru cture using artificial light.

23.28. License . A state issued cannabis license, which includes both an A-license and an M-license, as well as a testing laboratory license.

24.29. Licensee. Any person or entity holding a state issued commercial cannabis A- license or an M-license, and includes the holder of a cannabis testing laboratory license.

25.30. M-license . A state license issued for commercial cannabis activity involving medicinal cannabis.

26.31. Manager. A person with responsibility for the establishment, organization, registration, supervision, or oversight of the operation of a cannabis business, including but not limited to persons who perform the functions of president, 665
4 vice president, director, operating officer, financial officer, secretary, treasurer, or manager of the business.

27.32. Manufacturer. A State-licensee that manufactures cannabis by compounding, blending, extracting, infusing, or otherwise making or preparing cannabis products. “Manufacture” includes extraction, infusion, packaging or repackaging, and labeling or relabeling packages of cannabis products, in accordance with State Law.

28.33. Marijuana. See Cannabis.

29.34. Mixed -Light Cultivation. The cultivation of mature cannabis in a greenhouse, glasshouse, conservatory, or other similar structure using light deprivation and/or one of the artificial lighting models described below:

a. Mixed-light Tier 1. the use of artificial light at a rate of six watts per square foot or less;
b. Mixed-light Tier 2. the use of artificial light at a rate above six and below or equal to twenty-five watts per square foot.

30.35. Non -Storefront Retail Facility . A facility that is c losed to the public where cannabis, cannabis products, edible cannabis products, or devices for the use of cannabis or cannabis products are offered for retail sale exclusively by delivery, in accordance with State Law.

31.36. Owner or Ownership interest . An interest held by a person who is an owner as defined by State of California commercial cannabis regulations or who has a financial interest in the commercial cannabis business of 5% or more.

32.37. Personal Cultivation . The cultivation of no more than six (6) cannabis plants conducted by an individual strictly for that individual’s personal use, possession, processing, transporting, or giving away without any compensation whatsoever in accordance with State law, including but not limited to Health and Safety Code sections 11362.1 and 11362.2, as may be amended. Personal cultivation also means and includes cultivation of medic inal cannabis conducted by a qualified patient exclusively for his or her personal medic inal use, and cultivation conducted by a primary car egiver for the personal medicinal purposes of no more than five specified qualified patients for whom he or she is the primary caregiver, in accordance with State law, including Health and Safety Code sections 11362.7 and 11362.765, as may be amended.

Except as herein defined, personal cultivation does not include, and shall not authorize, any cultivation conducted as part of a business or commercial activity, including cultivation for compensation or retail or wholesale sales of cannabis.

33.38. Primary Caregive r. The individual, designated by a qualified patient or by a person with an identification card issued pursuant to California Health and Safety Code Section 11362.7, who has consistently assumed responsibility for the housing, health, or safety of that patient or person. The primary caregiver may be a licensed clinic, residential care facility, hospice, or home health agency.
666

5 34.39. Private Residence . A house, apartment unit, mobile home, or any other similar dwelling.

35.40. Qualified Patient. A person who is entitled to the protections of California Health and Safety Code Section 11362.5, for patients who obtain and use cannabis for medic inal purposes upon the recommendation of an attending physician, whether or not that person applied for and received a valid identification card issued pursuant to State Law.

36. Retail Facility. A facility where cannabis, cannabis products, edible cannabis products, or devices for the use of cannabis or cannabis products are offered for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale.

41. 42. Retailer s. An individua l, retail facility , storefront retail facility, and non - storefront retail facility.

43. State. The State of California.

37.44. Storefront Retail Facility. A retail facility that has a physical location, including an address where commercial cannabis activities are conducted, and that sells cannabis goods to customers at its premises or by delivery.

45. Testi ng Laboratory. The facility where tests are performed on cannabis or cannabis products and that holds a valid certificate of accreditation and license from the Bureau, if required.

46. Test ers. An individual or business that performs tests on cannabis or cannabis products and that holds a valid certificate or accreditation and license from the Bureau, if required.

38. Transporters. An individual or business that transports cannabis or cannabis products for the purpose of commercial cannabis activities.

39.47. Volatile Solvent . Is the same as defined by the California Department of Health in §40100 of the California Code of Regulations , as may be amended, and means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.

C. Permits Required. A Conditional Use Permit (CUP) and a Cannabis Business Permit (CBP) are both required for all commercial cannabis activities prior to operation.

Cannabis businesses shall first obtain a CUP by submitting an application pursuant to Section 15.04.610.270 (H) of this Article and any application forms and fees required in accordance with Article 15.04.803 as a requisite for obtaining a CBP. The provisions of Article 15.04.806 Use Permits apply, including but not limited to procedures for appeals, modifications, and approval. Once building permits are obtained and finaled, if required, the required State licenses are obtained, and Police City Regulatory fees paid, a CBP will be granted. CUPs and CBPs will only be granted to entities operating legally according to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), other applicable State Law, and the State regulations. R easonable 667
6 conditions of approval may be imposed, including but not limited to requirements for permits from the County for retail sales of edible cannabis products and from the State for food product manufacturing.

D. Operating Without Permits. It shall be unlawful for any person as defined by this Article to engage in, conduct or carry on, in or upon any premises within the City any commercial cannabis business without a CUP and CBP. Persons operating in violation of this Article shall be given an amnesty period to come into compliance by submitting a complete CUP application within one hundred twenty (120) days of the effective date of this Article and securing both the required CUP and CBP within one hundred eighty ( 180) days of application submittal . Failure to submit a complete CUP application within the amnesty period will result in further enforcement. Any persons in violation of this subsection shall be prohibited from applying for a CUP for one year anywhere in t he City of Richmond. In addition, commercial cannabis uses shall be prohibited on the subject property for one year.

E. Promulgation of Regulations, Standards and Other Legal Duties. In addition to any regulations adopted by the City Council, the Director is authorized to establish administratively any additional rules, regulations and standards governing the issuance, denial or renewal of Cannabis Business Permits, the ongoing operation of Cannabis Businesses and the City 's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Article. This authority extends to situations where modifications in State cannabis laws or changes in license types authorized by the State are deemed essential for the effective im plementation of the objectives outlined in this Article.

E. Existing Medicinal Cannabis Businesses. Existing permitted medicinal cannabis businesses, including those temporarily authorized for A -license activities, operating within the City are required to submit an application for an AUP (Administrative Use Permit) within ninety (90) days of this Article taking effect to continue to conduct A- license activities for authorized medicinal uses and/or to conduct distribution activities. Any expansion of use beyond an A -license addition or addition of distribution activities requires a CUP modification. Applications for a CBP shall be required within 30 days of fina l approval of a n AUP or CUP modification. If a complete application is not made within the required time, A -license activities temporarily authorized shall cease. All other authorized medicinal cannabis businesses shall submit a CBP application within 30 days of this Article taking into effect.

F. Locations Where Allowed and Number Allowed.

1. Cultivators, Manufacturers, Mixed -light Cultivators, Testing Laboratories, and Distributors . All commercial cannabis cultivation, manufacturing, mixed-light cultivation, testing, and distributor operations shall be conditionally permitted as provided for in the City’s Land Use Regulations Tables in Chapter 15.04.

7 i. The retail facility has operated in compliance with all local and state regulations; and
ii. The expanded use will not negatively impact the surroundin g community.
b. New Retail Facilities. Any new commercial cannabis retail and non- storefront retail facilities are only allowed to locate in a CR , Regional Commercial Zoning District with a conditional use permit unless, following a public hearing, the Planning Commission makes all of the following findings to authorize a retail facility to locate on a site in the CG General Commercial Zoning District:
i. The retail facility has demonstrated that it considered locations within the CR District and found no location meeting the requirements of this section that serves the needs of its customers; and
ii. The proposed location within the CG District would
complement the surrounding community while providing
necessary services to its customers; and
iii. The proposed location is not abutting a residential use.

3. Distance from Schools, Parks, Community Centers, Youth Center, Child -Care Center, or Nursery School.
a. All commercial cannabis activity must be located a minimum of 1,500 feet from any public or private high school and a minimum of 600 feet from any public or private kindergarten, elementary, middle or junior high school that is in existence at the time the permit is issued. b. All commercial cannabis activity shall be located a minimum of 600 feet from any park, community center, youth center, and public or private child-care center that is in existence at the time the permit is issued.
c. Following a public hearing, the Planning Commission may make exceptions to the distance requirements for all commercial activities if all of the following findings are made based on specific facts:
i. The location, design and proposed operating characteristics of the cannabis business is such that it is highly improbable that persons on, in or travelling to or from nearby parks,
community centers, youth centers, or child-care centers would be able to view persons in, entering, or leaving the cannabis facility; and
ii. Allowing the cannabis business to locate within 1,500 feet of a public or private high school or within 600 feet of a park, community center, youth center, and public or private child - care center, will not grant the cannabis business a special privilege not available to other commercial cannabis
businesses within the City; and
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8 iii. The cannabis business has demonstrated that it considered other locations and selecte d the location that would have the least negative impact on the surrounding community while providing necessary services to its customers.

4. Number of Commercial Cannabis Businesses.
a. No more than three six (36) commercial cannabis storefront retail facilities and two (2) non-storefront retail facilities shall be permitted or allowed to operate in the City. Of these retail facilities, t Two (2) storefront retail facilities and two (2) non -storefront retail facilities shall be designated to be owned by new Equity Applicants or Equity Businesses, who are not currently permitted to operate a retail cannabis facility in the City . The City has established a competitive selection process in Section 15.04.601.010 270 (IJ)(1) of this Article to objectively award permits for which there are a limited number of permits available, such as for retail facilities. All competitive -based considerations shall be included with the application forms. b. There shall be no limit on the num ber of commercial cannabis cultivators, distributors, testing laboratories, or manufacturing businesses in the City as long as they obtain v alid State and local permits and licenses, including CUP and CBP from the City of Richmond for each location.
b.c. This section is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the City. Nothing in this Article creates a mandate that the City must issue any or all of the cannabis business permits.

G. Delivery of Commercial Cannabis and Cannabis Products. a. The delivery of commercial cannabis or cannabis products from a State licensed retail facility or non -storefront retail facility to a customer is permitted, provided such deliveries are conducted in accordance with this Article and State law , including obtaining a Richmond Business license. All other unpermitted and unlicensed delivery services within the City are prohibited.
b. Existing permitted retail cannabis businesses operating within the City are required to obtain a CUP modification before conducting delivery activities.
c.b.

H. Conditional Use Permit Application Process.

9 a. Requirements for All Commercial Cannabis Businesses. A commercial cannabis business is required to provide the following information in support of its permit application.
i. Information Regarding the Proposed Property.
(1) The address of the property where the proposed
commercial cannabis business will operate.
(2) A site plan with fully dimensioned interior and exterior floor plans, including electrical, mechanical, plumbing, parking, and disabled access compliance pursuant to
Title 24 of the State of California Code of Regulations and the federal Americans with Disabilities Act. For a
retail facility , the site plan must show that there are separate rooms or partitioned areas within the retail
facility for the receipt of supplie s and for the delivery of cannabis to customers.
(3) Exterior photographs of the entrance(s), exit(s), street frontage(s), parking, front, rear and side(s) of the site. (4) Photographs depicting the entire existing interior of buildings on the site.
(5) If the site is being rented or leased or is being
purchased under contract, a copy of such lease or
contract.
(6) If the site is being rented or leased, written proof that the property owner, and landlord if applicable, were
given notice that the property will be used as a
commercial cannabis business, and that the property
owner, and landlord if applicable, agree(s) to said
operations. If the retail facility is to be a subtenant, then "landlord" shall mean the primary tenant.
ii. Information Regarding Each Business Applicant, Owner and Manager. For each business applicant, owner , and manager, the following information must be provided, to the extent applicable:
(1) The name, address, telephone number, title and
function(s);
(2) A fully legible copy of one valid government -issued form of photo identification, such as a driver's license; and
(3) A summary criminal history ("LiveScan") prepared by the Richmond Police Department not more than thirty
(30) days prior to the date of application.
iii. Background Investigation of A pplicants, Owners and Managers. The applicant, each owner, and proposed manager shall undergo a criminal background investigation and shall 671
10 submit the name, address, telephone number, title, primary responsibility(ies), and a valid government - issued form of identification, together with any other related information requested by the Chief of Police for the purpose of conducting mandatory background checks. This includes but is not limited to complet ing a LiveScan with the Richmond Police
Department no more than 30 days from the date of the
application. No person may be issued a CUP or CBP unless they have first cleared the background check and submitted LiveScan results that are clean and clear of any of the convictions listed below . Neither the applicant, each owner, nor any proposed or prospective manager shall have been convicted of:
(1) A serious or violent felony conviction, as specified in Penal Code Section 667.5(c) or Section 1192.7(c);
(2) A felony conviction involving dishonesty, fraud or
deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in Cal.

Penal Code §§ 186.11, 470, 484, and 504a, respectively; or equivalent offenses in other states;
(3) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away,
preparing for sale, or peddling, any controlled
substance to a minor; or selling, offering to sell,
furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or
(4) A cConviction of illegal use, possession,
transportation, distribution, or similar activities related to controlled substances, as defined in the Federal
Controlled Substances Act, not including cannabis -
related offenses for which the conviction occurred
after the passage of the Compassionate Use Act of
1996.

11 ever had such a license/permit revoked or suspended
and the reason(s) therefore.
(2) The name and address of the commercial cannabis
business’ current Agent for Service of Process.
(3) Information pertaining to a Notice of Violation for unpermitted cannabis operations or any cannabis
related enforcement violations or within the City.
iv.v. Plan for Unsold Cannabis. A plan for the disposal of any unsold cannabis or cannabis product must be submitted that renders or prevents any portion thereof from being
recognizable and useable by any person or animal.
v.vi. Neighborhood Responsibility Plan. A neighborhood responsibility plan that demonstrates how the business will fulfill its responsibilities to the neighborhood, including neighborhood outreach, methods for future communication, and dispute resolution.
vi.vii. Security Plan. A security plan indicating how the applicant will comply with the requirements of this Section and any other applicable law, rule, or regulation.
vii.viii. Affirmation that the Application is True. A statement dated and signed by each management member, under penalty of
perjury, that the management member has personal knowledge of the information contained in the application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the management member(s).
b. Supplemental Application Requirements for Retail Facilities. In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis retail facilities. i. Security Plan. A retail facility’s security plan must include procedures for verifying identification of customers and primary caregivers both before entering the retail facility and again before receiving cannabis ; the number, location and hours of security guards; and a theft prevention plan including a detailed description of all surveillance and video equipment, location and coverage of cameras and how law enforcement or their representatives will be given real-time and stored access. ii. Daily Customer Limits . A retail facility or non -storefront facility shall adher e to daily limits on adult -use and medicinal cannabis and cannabis products by its customers in accordance to State law.
c. Supplemental Application Requirements for Manufacturers. In addition to the standards applicable to all commercial cannabis businesses, the following apply to commercial cannabis manufacturing operations. 673
12 i. Safety of Manuf acturing Process. A commercial cannabis manufacturer must demonstrate one or both of the following:
(1) The only manufacturing processes used are either
solventless or employ only nonflammable, nontoxic
solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21
U.S.C. Sec. 301 et seq.).
(2) The manufacturing processes only uses solvents
exclusively within a closed -loop system that meets all of the following requirements:
(a) The system uses only solvents that are generally
recognized as safe pursuant to the federal Food,
Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et
seq.).
(b) The system is designed to recapture and
contain solvents during the manufacturing
process and otherwise prevent the off -gassing
of solvents into the atmosphere to mitigate the
risks of ignition and explosion during the
manufacturing process.
(c) A licensed engineer certifies that the system
was commercially manufactured, is safe for its
intended use, and was built to codes of
recognized and generally
accepted good engineering practices,
including, but not limited to, the American
Society of Mechanical Engineers, the American
National Standards Institute, U nderwriters
Laboratories, the American Society for Testing
and Materials, or OSHA Nationally
Recognized Testing Laboratories.
(d) The system has a certification document that
contains the signature and stamp of a
professional engineer and the serial number of
the extraction unit being certified and that the
certification is renewed either annually or
according to the manufacturer’s
recommendations.
ii. Fire, Safety, and Building Code Requirements. The
manufacturer must meet all State, county and locally required fire, safety, and building code requirements.
iii. Approval from Richmond Fire Prevention Services Division or designee . The commercial cannabis manufacturer must receive and maintain approval from the Richmond Fire
Prevention Services Division for the closed-loop system and for other equipment used for manufacturing and extraction 674

13 operations, per guidelines adopted by the Richmond Fire Prevention Services Division.
iv. Edible Cannabis Products. Commercial cannabis
manufacturers that prepare edible cannabis products must demonstrate compliance with State, County and local
requirements regarding the preparation, distribution, labeling, and sale of food.
d. Supplemental Application Requirements for Cultivators and Manufac turers. In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis cultivation and manufacturing operations.
i. Plans for Use of Renewable Electricity. All cultivation and manufacturing operations must submit detailed plans
demonstrating that the electricity used in the cultivation and manufacturing operations is from a renewable energy source or arrangements have been made to offset use of
nonrenewable electrical energy with renewa ble energy from another source. If written evidence of enrollment in the Deep Green 100 percent renewable energy program administered by Marin Clean Energy (MCE) is provided, no further details need to be submitted with the application. Enrollment shall be maintained, and evidence provided annually in order to renew CBP.
ii. Plans for Water Conservation. All cultivation and
manufacturing operations must submit detailed plans
demonstrating strict water conservation methods will be instituted and maintained at all times, and such plans must include records of monthly water consumption. These plans also must show that the cultivation facility will be equipped with water collection and filtration systems to reduce irrigation water to the maximum exte nt possible as determined by the Zoning Director or the State, if its regulations are more restrictive.
iii. Plans for Wastewater. All cultivation and manufacturing operations must demonstrate compliance with the limitations on discharge into the City’s wastewa ter system, as set forth in Richmond Municipal Code Chapter 12.18. This shall include the su bmittal of an Industrial User Permit Application (Baseline Monitoring Report) to the Water Resource Recovery Department.
iv. Plans for Stormwater. All cultivation and m anufacturing operations must demonstrate compliance with the limitations on discharge into t he City’s municipal separate storm sewer system (MS4), as set forth in Richmond Municipal Code
Chapter 12.22. This shall include any and all provisions 675
14 required under the Municipal Regional Permit (NPDES Permit No. CAS612008.
v. Plans to Prevent Mold. All cultivation and manufacturing operations must submit a plan that specifies the methods to be used to prevent the growth of harmful mold.
vi. Ventilation Plan. All cultivation and manufacturing operations must submit det ailed information about the proposed
ventilation system, including technical specifications indicating that the system is capable of preventing the release into the atmosphere of cannabis odors from the culti vation or
manufacturing operation.

2. Duration of Conditional Use Permit. Permits issued under this Section will be subject to time limits, renewal, and reporting requirements as specified in the conditions of approval. These conditions shall include resubmittal requirements for any change in circumstances, including substantive changes in ownership, management, sources of electricity, or operations, from those described in the original application.

3. Expiration and Extension . A commercial cannabis CUP is subject to the expiration and extension procedures in RMC Section 15.04.803.110.

4. Modification of Permit Conditions. Modifications to the permit or the conditions of approval may be requested in accordance with Section

15.04.803.110 and with prior notification and approval from the appropriate State cannabis regulatory agency.

15 of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked;
vi. The state has determined, based on substantial evidence, that the permittee or applicant is in violation of the re quirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis business permit;
vii. The applicant, owner, or permittee is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate
agencies;
viii. The applicant, permittee, owner, or any of its managers have failed to comply with the requirements provided in Section

15.04.610.270(C);
ix. The applicant, permittee, owner, or any managers fail to submit supplemental applications required for certain types of commercial cannabis businesses; or
i.x. The Livescan/background investigation results indicate that one or more of the criteria for set forth in Section

15.04.610.270(H)(1)(a)(iii) exists.
c. Additional Provisions For Revocation.
i. The procedures and grounds for revocation provided in RMC Section 15.04.803.130 (Revocation) apply.
ii. The CUP for a commercial cannabis business may be revoked if it is determined that one or more of the following
circumstances exist:
(1) A CUP for commercial cannabis business may be
revoked Aafter the business is ope rational, if the
business ceases to be in regular and continuous
operation for ninety (90) days.
b.d. Timing of Consideration After Revocation or Suspension of CUP. Whenever a CUP for a commercial cannabis business has been revoked or suspended, no permit application by any of the owners or managers of that commercial cannabis business shall be considered for a period of three years from the date that the notice of the revocation or suspension was mailed to the business owner.
c. The procedures provided in RMC Section 15.04. 803.130 Revocation apply.

I. Cannabis Business Permit (CBP) Application Process.

1. Cannabis Business Permit Applications . Following the issuance of a CUP, a cannabis business is required to submit an application for a CBP specific to the business activity defined by the State pertaining to that activity for any 677
16 medicinal or adult-use or any other commercial cannabis activity the State may license. It shall be unlawful for any person to engage in, conduct or carry on, in or upon any premises within the City any commercial cannabis business without a CBP. All cannabis businesses must satisfy compliance with the terms and conditions of their CUP prior to the City issuing the CBP. a. Requirements for All Commercial Cannabis Businesses . A commercial cannabis business is required to provide the following information in support of its permit application.
i. A copy of its CUP, containing a statement dated and signed by each business owner, under penalty of perjury , that they have read, understand, and shall ensure compliance with the conditions of the CUP.
ii. A copy of its State license (for renewals).
iii. A copy of its Certificate of Occupancy Permit, if applicable. iv. A copy of its Permit to Operate from the Richmond Fire Prevention Services Division, if applicable.
v. A copy of its City of Richmond Business License.
vi. A copy of the c annabis business operating conditions, containing a statement dated and signed by each owner and manager, under penalty of perjury, that they have read, understand, and shall ensure compliance with all Operating Standards set forth in this Article.
vii. A state ment dated and signed by each owner and manager, under the penalty of perjury, that the information regarding each business owner and manager submitted with the CUP
application is current and accurate, or proof that Zoning Administrator approval has been obtained for any change s in management or ownership.
viii. A valid seller's permit from the California Department of Tax and Fee Administration or successor agency.
ix. Proof that payment of all City of Richmond fees and taxes is current.
ix.x. Documents required under 15.04.610.270(H)(1)(a)(ii) and (iii).

2. Issuance of Cannabis Business Permit. The issuance of the CBP requires approval and signatures from all relevant City departments. The Zoning Administrator or designee , after receiving the completed application and aforementioned information will grant the permit where the above -listed requirements are met.

3. Duration of Cannabis Business Permit. A CBP shall be valid for one (1) year or until December 31 each year, unless sooner revoked. No permit granted herein shall confer any vested right to any person or business for more than the above-referenced period.
678

17 4. Deni al of Cannabis Business Permit. If the Director determines in the initial screening that an application does not meet minimum eligibility requirements, the applicant shall be notified in writing that the application has been denied. Within 5 business days of the date of the decision, an applicant may file a request for immediate reconsideration. The Director shall schedule a meeting with the applicant within 10 business days of the request for reconsideration at which time the applicant may submit information demonstrating that the applicant meets the mi nimum eligibility requirements.

The Director may deny a cannabis business permit if they determine that one or more of the following circumstances exist:
a. The application received is incomplete, filed late, or not responsive to the requirements of this Article;
b. The application contains a false or misleading statement or omission of a material fact;
c. The operation of the business site described in the application fails to comply with any of the requirements in this code, State law, or any other regulation;
d. The applicant has not received a conditional use permit from the City for the corresponding cannabis business;
e. The applicant or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article; f. Applicant has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked; g. The applicant was notified that it was conducting commercial cannabis activity in violation of this Article andor any other City of Richmond ordinances, codes and requirements, and failed to cure the violation in a timely manner;
h. The applicant fails or is otherwise unable to obtain its State of California license;
i. The applicant is delinquent in payment of Federal, State or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies; or
j. Operation of the proposed cannabis business site, as represented in the application, is a threat to the public health, safety, or welfare;. k. The applicant has failed to comply with the requirements provided in Section 15.04.610.270(C);
l. The Livescan/background investigation results indicate that one or more of the criteria for denial set forth in Section

15.04.610.270(H)(1)(a)(iii) exists;
m. The applicant has failed to comply with the terms and conditions of their CUP; or
679
18 a.n. The applicant has refused to allow or otherwise failed to make the cannabis business available for City inspection.

3.5. Cannabis Business Permit Annual Renewal. Applications for the renewal of a permit shall be filed with the Zoning Administrator or designee at least sixty (60) calendar days before the expiration of the current permit. Any cannabis business allowing their permit to lapse, or which permit expired during a suspension shall be required to submit a new application, pay the corresponding application fees.
a. The renewal application shall contain all the information required for Cannabis Business Permit applications. The applicant shall pay a fee in an am ount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Article.
b. As part of the renewal process, upon the City’s receipt o f a renewal application, the City has the right to conduct a City inspection. shall be conducted at least sixty (6 0) days prior to the permit's expiration.

The purpose of this inspection is to ensure that the cannabis business remains in compliance with all local and state regulations, as well as the terms and conditions specified in the Conditional Use Permit (CUP).

19 regulations adopted pursuant to this Article, or any permit conditions.
viii. The permittee was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violations in a timely manner.
ix. The permittee or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article.
x. The permittee has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis - related permit(s) revoked.
xi. The permittee fails or is unable to renew its State of California license.
xii. If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis business permit.
xiii. The permittee is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the
delinquency when notified by the appropriate agencies.
xiv. The permittee has failed to comply with the requirements provided in Section 15.04.610.270(C).
xv. The Livescan/background investigation results indicate that one or more of the criteria for set forth in Section

15.04.610.270(H)(1)(a)(iii) exists.
xvi. The permittee has failed to comply with the te rms and conditions of their CUP.
d. The Director is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the Director is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance w ith state or local laws and regulations or to preserve the public health, safety, or welfare. a.e. If a renewal application is denied, a person may file a new application pursuant to this Article not sooner than one year from the date of the denial.

4.6. Transfer o f Cannabis Business Permit/ Business Modifications . A CBP does not run with the land or business. A CBP is not transferable or assignable to another person or owner, except as approved by the Zoning Administrator.

Notwithstanding the foregoing, the Zoning A dministrator may administratively approve any changes in management or ownership or change 681
20 in business name or structure and may require additional background check(s) or additional information for such approvals.

5.7. Revocation or Suspension of Cannabis Bus iness Permit. Any CBP issued under this section may be immediately suspended or not renewed for any of the reasons listed below or above in Section 15.04.610.270(I)(5)(c)(i). Any CBP issued under this ordinance may be revoked by the City following notice and opportunity for a hearing before the Zoning Administrator or designee for any of the following reasons:
a. A cannabis business fails to comply with the requirements of this article Article or any conditions of approval of CUP.
b. A cannabis business’s State license for commercial cannabis operations is revoked, terminated or not renewed.
c. The cannabis business’s State license for commercial cannabis operations is suspended. The City shall not reinstate the CBP until documentation is received showing th at the State license has been reinstated or reissued. It shall be up to the City’s discretion whether the City reinstates any permit.
d. The cannabis business fails to become operative within one year of obtaining its CBP.
e. Once operational, the business ceases to be in regular and continuous operation for ninety (90) days unless given prior approval by the City for extenuating and unusual circumstances.
f. State law permitting the use for which the license was issued is amended or repealed resulting in the prohi bition of such use, or the City receives credible information that the federal government will commence enforcement measures against such businesses and/or local governments that permit them.
g. Circumstances under which the CBP was granted have significantly changed and the public health, safety and welfare require the suspension, revocation, or modification.
h. The CBP was granted, in whole or part, on the basis of a misrepresentation or omission of a material statement in the permit application.
i. The cannabis business is not current on City taxes or Fees. i.j. The cannabis business is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies
k. The owner was found to operate another cannabis facility illegally within the City.
l. The owner or any managers refuse to allow or otherwise fail to make the cannabis business available for City inspection.
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21 m. The cannabis business has failed to conform to the requirements of this Article, this Code, State law, any regulations adopted pursuant to this Article, or any permit conditions.
n. The owner or any manager was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violations in a timely manner.
o. The owner or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article. p. The owner has had a State or local cannabis -related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked. q. The owner or any of its managers have failed to comply with the requirements provided in Section 15.04.610.270(C).
j.r. The Livescan/background investigation results indicate that one or more of the criteria for set forth in Se ction 15.04.610.270(H)(1)(a)(iii) exists.

J. Competitive Selection Process. The City has established a competitive selection process to objectively award permits for which there areis a limited number of permits available, such as for retail facilities.

1. Application Procedures and Requirements. By resolution the City Council shall adopt procedure guidelines and review criteria for the City's evaluation of cannabis business permit applications.
a. The procedure guidelines shall provide the process for soliciting applications including time frames, limitations, requirements, forms, and rules for completing applications.
b. The review criteria shall include detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to particular sets of criteria.
c. The Director shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the procedures guidelines and review criteria.
d. The City reserves the right to reject any or all applications for a cannabis business permit. Prior to such permit issuance, the City may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications as sume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Article , may be cancelled at any time prior to permit issuance. The C ity further reserves the right to request and obtain additional information from any candidate submitting an application. 683
22 In addition to a failure to comply with other requirements in this Article, an application may be rejected for any of the following reasons:
i. The application was received after the designated time and date of the deadline.
ii. The application did not contain the required elements, exhibits, or was not organized in the required format.
iii. The application was considered not fully responsive to the request for a permit application.

1.2. Competitive Application Period . In the event that a permit for a commercial cannabis activity with a limited permit number becomes available, the Director shall open the competitive application period and make permit applications available.
a. Notice of the competitive selection period shall be published by means determined necessary by the Director to provide public notice of the opportunity to apply.
b. The competitive application period shall be a minimum thirty (30) calendar days from the date the applications are released. Should the last day fall on a day when City Hall is closed, the application period shall be extended to the next open day.
c. Following the application period, the Director or designee shall stop accepting applications and review all applications received.

2.3. Initial Application Review. The Director or designee shall determine whether each application demonstrates compliance with minimum requirements required in the permit application and be entered into a pool of applicants for the Final Application Review and Scoring. These requirements include but are not limited to:
a. Application was submitted during the application period. b. Application forms are filled out completely and demonstrate compliance with minimum requirements required in the permit application.
c. Any application forms required in accordance with Article 15.04.803 are completed and required fees per master fee schedule are paid. d. A signed statement that the proposed location of the commercial cannabis business on the application meets the zoning criteria established in this Article including, but not limited to, any and all sensitive use separation criteria required by this Article.

3.4. Final Application Review and Scoring. The Director or designee, after reviewing the applications approved in the Initial Application Review shall convene a Selection Panel composed of the Fire, Police, Finance and Planning, or their designees, to make the final decision, based on the priority point system to objectively award the top applicant(s). A complete description of the 684

23 priority point system and all priority point considerations shall be included with the application forms.

K. Minimum Standards Related to the Operation of Commercial Cannabis Businesses. Any permit s issued, renewed, or modified pur suant to this Section includes the following conditions of operation. Each permittee is required to comply with the following conditions. The Planning Commission may impose additional conditions as necessary to preserve the public health, safety and welfare.

1. Standards Applicable to All Commercial Cannabis Businesses. The following standards are applicable to all commercial cannabis businesses. a. Compliance with State and Local Law Required. The applicant shall fully comply with all State laws and local laws for commercial cannabis businesses.
b. Maintain Licenses and Permits. All commercial cannabis businesses must maintain all licenses and permits required by the State, the County and the City.
c. Compliance with Laws Regarding Edible Cannabis Products. Commercial cannabis businesses that manufacture, prepare, dispense, and/or sell food, including cannabis -infused foods and/or edible cannabis products, must comply with and are subject to the provisions of all relevant State and local laws and County regulations regarding the preparation, distribution, labeling and sale of such items. d. Job Opportunities for Richmond Residents. All commercial cannabis business shall provide maximum feasible opportunities for Richmond residents to apply for jobs through outreach, advertising, and contacts with local job centers. The City encourages “local hires” whenever possible, consistent with General Plan policies and State and federal employment law. Commercial c annabis businesses shall coordinate hiring opportunities with the City’s Employment and Training Department.
e. Exterior Lighting. Exterior building and parking area lighting at the commercial cannabis businesses must be in compliance with all applicable provisions of Article 15.04.604.
f. Roof Hatches. The commercial cannabis business’ windows and roof hatches shall be secured so as to prevent unauthorized entry; equipped with latches that may be released quickly from the inside to allow exit in the event of emergency; and comply with all applicable Building and Fire Code provisions.
g. Ventilation. The commercial cannabis business must provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the property is not detected outside the property, anywhere on adjacent property or public rights -of-way, or within any other unit located within the same building as the cannabis retail facility, cultivation site, cannabis product manufacturer or any other subsequently approved cannabis business.
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24 h. Video Surveillance System . The commercial cannabis business must be monitored at all times by digital surveillance system for security purposes. The digital surveillance system must be of adequate quality, color rendition and resolution in accordance to State Law. The cameras shall record continuously 24 hours per day at a minimum of 15 frames per second and shall be maintained at the property for a minimum of 90 calendar days. Failure to maintain the cameras in good working condition at all times is a violation of this Section and cause for permit revocation or suspension.
i. Alarm System. A permittee shall maintain an alarm system as defined in Business and Professions Code section 7590.1(n) at the licensed premises an in accordance wi th California Code of Regulations Title 16, Division 42.
j. Consent to Inspection. Authorized City, County, and State representatives may enter and inspect the location of a cannabis business at any time, without notice, and inspect the location of any cannabis business as well as any recordings and records required to be maintained pursuant to this Article or under applicable provisions of state law.the property of every commercial cannabis business between the hours of 9:00 a.m. and 5:00 p.m. during the week (Monday through Friday), or at any reasonable time to ensure compliance and enforcement of the provisions of this Section, except that the inspection and copying of private medical records shall be made available to the Police Department only pursuant to a properly - executed search warrant, subpoena, or court order. It is unlawful and cause for immediate suspension or revocation of the CBP for any property owner, landlord, lessee, commercial cannabis business, and/or its owner, agent, employee to refuse to allow, impede, obstruct or interfere with, or otherwise not allow an inspection, review or copy records, recordings or other documents required to be ma intained by a cannabis business under this Article or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis business under this Article or under state or local law.. k. Restrictions on Access and Sale. No commercial cannabis retail facility shall cause or permit the access, sale, or exchange of cannabis to any person who is not 21 years of age or a qualified patient who is 18 years of age or older . No commercial cannabis manufacturer, distributor, testing laboratory, or cultivator shall cause, permit or allow any sale, distribution or exchange of cannabis to any person at the manufacturing, testing, distribution, or cultivation location, nor shall the manufacturer, testing laboratory, distributor, or cultivator permit any walk-ins or allow any person into the site, unless such person is authorized to engage in commercial cannabis business under State and local law.
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25 l. Visibility of Cannabis. No cannabis or cannabis products on the site of a commercial cannabis business shall be visible with the naked eye from any adjacent public or private property, nor shall commercial cannabis or commercial cannabis products be visible from the building exterior. No cultivation shall occur at the retail facility’s location unless the business owner has the appropriate local and State permits, and the area devoted to the cultivation is secured from public access by means of a locked gate and any other security measures necessary to prevent unauthorized entry, and has been inspected and approved by the Richmond Fire Prevention Services Division and Richmond Building Departments.
m. Age Restriction. Employees or persons retained by a permittee to work within or on a permitted premise or to handle cannabis goods shall be at least 21 years of age. No customer under the age of 21 shall be allowed at an adult-use cannabis business and no person under the age of 18 shall be allowed at a medicinal cannabis business. n. No Alcoholic Beverages or Tobacco Products . No commercial cannabis business and/or commercial cannabis permittee shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco products at a commercial cannabis business or its parking area, except that employees of the commercial cannabis business and/or commercial cannabis permittee may consume tobacco products in outdoor areas designated in accordance with applicable prov isions of the Richmond Municipal Code and State law.
o. No Cannabis Consumption. No commercial cannabis business and/or commercial cannabis permittee shall cause or permit the smoking, ingesting, or otherwise consuming cannabis on the premises of a commercial cannabis business or in its parking area.
p. Secure Storage. All cannabis and cannabis products shall be stored on - site in structures that are completely enclosed, in a locked vault or safe that is not bolted to the floor, or in any other secured storage structure.

No off-site storage is allowed.
q. No Retail Sales in Cultivation, Distribution, Testing or Manufacturing Facilities.

No commercial cannabis cultivator, distributor, manufacturer or tester shall allow or permit retail sale of its product at the facility location. r. Maintenance of Records. Records of commercial cannabis activity must be maintained in accordance with State and local law, be maintained in order to show compliance with this Section and be made available to the City upon request electronically as well as in hard copy if requested.

Failure to provide such records is grounds for revocation of the conditional use permit and Cannabis Business Permit . Records maintained must include but are not limited to the following. i. All commercial cannabis businesses must maintain:
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26 (1) Proof of a valid conditional use permit issued by the Planning Commission in conformance with this
Section. A copy of the CUP shall be displayed at all
times in a place visible to the public.
(2) Proof of a valid C BP issued by the Planning
Department in conformance with this Section. A copy
of t he CBP shall be displayed at all times in a place
visible to the public.
(3) The full name, address, and telephone number(s) of the owner, landlord and/or lessee of the property.
(4) The full name, address, and telephone number(s) of
each person engaged in the management of the
business and the exact nature of the participation in the management of the business, and for cultivators, the
full name, address, and telephone number(s) of each
employee engaged in the cultivation of cannabis at the
property.
(5) A written accounting of all cash and in -kind
contributions, revenues received, reimbursements, and
compensation to the business and all expenditures and
costs incurred by the business.
ii. A retail facility shall maintain the following records on the property:
(1) An inventory record documenting the dates and the
daily amounts of cannabis and cannabis products
stored on the property and an inventory record of all
cannabis shipments distributed to the facility, as
required by the State’s track and trace system.
(2) Copies of the prohibited activity checklist, available from the Richmond Police Department, containing a
statement dated and signed by each manage r, under
penalty of perjury, that they read, understand and shall not engage in any prohibited activity.
(3) Evidence of: (a) verification that all manufactured products are manufactured, packaged, and labeled in
compliance with all applicable State and local laws; and (b) laboratory testing as required by State and local laws. iii. A manufacturer shall maintain the followin g records on the property:
(1) Evidence of: (a) verification that all cannabis products manufactured and packaged at the location are
manufactured, packaged, and labeled in compliance
with all applicable state and local laws; and (b)
laboratory testing as required by State and local laws. 688

27 (2) A list of any commercial cannabis distributor that the manufacturer has provided or intends to provide its
product to. The list shall include the name of the
distributor, its address, the date the cannabis product was sold or transferred to the distributor, and the type and amount of the product tha t was distributed as
required by the State’s track and trace program.
iv. A cultivator shall maintain the following records on the property:
(1) The current address of all sites at which cannabis is cultivated.
(2) An inventory record documenting the dates and
amounts of cannabis cultivated at the property, the
daily amounts of cannabis stored on the property, and
an inventory record of all cannabis transferred to a
commercial cannabis distributor . The inventory
records shall include total plants grown and total
weight of cannabis cultivated by the cultivator, the total weight of all cannabis sold or transferred to a
distributor, and receipts and documents detailing the
sale or transfer of cannabis as required by the State’s track and trace program.
(3) Copies of the prohibited activity checklist, available from the Richmond Police Department, containing a
statement dated and signed by the permittee(s) for the
cultivation site, under penalty of perjury, that they read, understand and shall not engage in a ny prohibited
activity.
(4) Evidence to verify that all cannabis is cultivated in compliance with all applicable state and local laws.
v. A distributor shall maintain the following records on the property:
(1) A list of any commercial cannabis businesses that the distributor has provided or intends to provide its
product to. The list shall include the name of the
cannabis business , its address, the date the cannabis
product was sold or transferred to the business, and
the type and amount of the product that was
distributed as required by the State’s track and trace
program.
vi. A commercial cannabis business that produces edible cannabis products shall maintain the following records on the property:
(1) Proof of inspections and approvals by Contra Costa Environmental Health Department and the County
Health Officer for food manufacturers, packagers
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28 and/or distributors , when such inspections or
approvals become required.
(2) Producers of edible cannabis products shall maintain a written or computerized log documenting:
(a) The source of the cannabis used in each batch
of product;
(b) The contaminant testing date; and
(c) The testing facility for the cannabis.
s. Use of Pesticides. No pesticides or insecticides that are prohibited by applicable law for fertilization or production of edible produce may be used on any cannabis cultivated, produced, or distributed by a commercial cannabis business. A commercial cannabis business shall comply with all applicable laws regarding use of pesticides. t. Disposal of Cannabis and Cannabis Byproducts. All cannabis and any product containing a usable form of cannabis must be made unusable and unrecognizable prior to removal from the business in compliance with all applicable State laws.
u. On-site Community Relations Contact. Commercial cannabis businesses must provide the Police Department and all residents, business es and property owners within 100 feet with the current name, phone number, secondary phone number and e -mail address of an on -site community relations contact person to whom notice of any operating problems associated with the commercial cannabis business may be reported.
v. On-Site Manager. All commercial cannabis businesses must have an on- site manager, at each commercial cannabis business, who is responsible for overall operation at all times that employees are conducting operations, and provide the Police Department with contact information for such person, including a telephone number and e-mail address.
w. Discouraging Nuisance. Commercial cannabis businesses must take all reasonable steps to discourage and correct objectionable conditions that constitute a public or private nuisance in parking areas, sidewalks, alleys and areas surrounding the commercial cannabis business and adjacent properties. Such conditions include but are not limited to smoking, creating a noise disturbance, loitering, littering, and graffiti. x. State Licenses. Any commercial cannabis business that fails to obtain or qualify for the required State license, or is refused such license, shall immediately cease all operations in the City.
y. Testing and Labeling . All cannabis, cannabis products, and edible cannabis products, must be tested and labeled as follows and as required by State law.
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29 i. Baked goods, such as cookies and brownies, shall be exempt from testing for contaminants. These products are still subject to testing for potency, as required for the label information, and must use cannabis or cannabis products that ha ve been tested for contaminants. All baked products must contain a list and warning of any known food allergens, like nuts, etc. and comply with CCR Title 17, Division 1, Chapter 13, §40254 and any other food safety requirement of local or State regulations.

2. Supplemental Standards for Retail Facilities . In addition to the standards applicable to all commercial cannabis businesses, the following apply to commercial cannabis retail; facilities.
a. Signage. A sign must be posted in a conspicuous location inside the commercial cannabis business and advise that:
i. You must be at least 21 years old or at least 18 years old with a valid physician’s recommendation to purchase, possess, or consume cannabis or cannabis products.
ii. The use of cannabis may impair a person's ability to drive a motor vehicle or operate heavy machinery;
iii. Loitering at the location of a cannabis retail facility for an illegal purpose is prohibited by California Penal Code Section 647(h); and
iv. This retail facility is permitted in accordance with the Municipal Code, and State law, including the MAUCRSA, and Bureau regulations.
b. Hours of Operation. A licensed cannabis retail facility or non-storefront retail facility may sell and deliver cannabis between the hours of 8:00 a.m. and 9:00 p.m.
c. Safety of Products. The retail facility must ensure that the cannabis, cannabis products, and edible cannabis it offers for sale are manufactured, packaged, tested, and labeled in compliance with all applicable state and local laws. No retail facility may obtain or distribute cannabis products from any commercial cannabis business unless such business has a valid permit or license issued by the Bureau and a California city or county.
d. Onsite Consumption. On-site consumption of cannabi s or cannabis products is specifically prohibited on the premises at all times.

3. Supplemental Standards for Cultivators. In addition to the standards applicable to all commercial cannabis businesses, the following apply to commercial cannabis cultivators.
a. Outdoor Cultivation Prohibited. All cultivation must be done inside a fully enclosed structure, which may be a greenhouse, and the cultivation operation shall not be visible from the exte rior of the structure.

Outdoor cultivation of cannabis is not permitted in any zoning district. 691
30 4. Supplemental Standards for Retail Facilities Engaged in Deliveries. a. Commercial cannabis deliveries may be made only from a commercial cannabis retail facility permitted by the City or from a State licensed retail facility outside of the City limits in compliance with this section, and in compliance with all State regulations.
b. All deliveries of cannabis goods shall be performed by a delivery employee of a retailer.
c. While carrying cannabis goods for delivery, a retailer’s delivery employee shall ensure the cannabis goods are not visible to the public. d. Persons engaged in delivery of cannabis or cannabis products on behalf of a licensed retailer , shall adhere to the delivery vehicle requirements and restrictions on the amount of cannabis and cannabis goods stored in the vehicle during delivery as set forth under State law. e. No cannabis delivery vehicle shall display signs, decals or any other form of advertisement.

5. Supplemental Standards for Distributors.
a. A distributor shall not store or distribute non- cannabis goods on or from the premises permitted for distribution of cannabis goods. b. A distributor shall ensure a label with the following information is physically attached to each container of each batch:
i. The manufacturer or cultivator’s name and license number; ii. The date of entry into the distributor’s storage area; iii. The unique identifiers and batch number associated with the batch;
iv. A description of the cannabis goods with enough detail to easily identify the batch; and
v. The weight of or quantity of units in the batch.
c. Employee breakrooms, eating areas, changing facilities, and bathrooms shall be completely separated from the storage areas.
d. A distributor shall adhere to all requirements for transportation of cannabis goods as set forth in State law.

6. Supplemental Standards for Testing Laboratory Businesses. a. A permitted ca nnabis testing facility shall comply with all State regulations contained in California Code of Regulations Title 16, Division 42 and as it may be amended from time to time. b. Any cannabis testing facility must maintain all c ertifications required by the State.
c. A permitted cannabis testing facility business, its owners and its employees may not hold an interest in any other cannabis business except another testing business.
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31 7. Supplemental Standards for Commercial Cannabis Businesses Producing Edible Cannabis Products.
a. The manufacturer and seller of edible cannabis products must ensure that all cannabis products and edible cannabis products it manufactures and/or sells complies with the any applicable provisions of all Stat e and local laws, including regulations of the Contra Costa County Environmental Health Officer regarding the testing, preparation, distribution, labeling and sale of food.
b. Preparation of Edibles.
i. Individuals involved in the production or distribution of edible cannabis products must
thoroughly wash their hands before
commencing production and before handling the finished
product.
ii. Gloves
must be worn when packaging edible products
containing cannabis.
iii. In order to reduce the likelihood of foodborne disease transmission, individuals who are suffering from
symptoms
associated with acute gastrointestinal illness or are known to be infected with a communicable disease that is transmissible through foodstuffs are prohibited from preparing edible products containing cannabis until they are free of that illness or disease, or are incapable of transmitting the illness or disease
through foodstuffs. Individuals who have sores or
cuts on their hands must use gloves when preparing and
handling edible products containing cannabis.
iv. Edibles that are sold at a retail facility may only be prepared by a locally-permitted, and State-licensed manufacturing facility. v. Any and all persons who produce edible cannabis products must be a State-certified food handler. The valid certificate number of such persons must be on record at each
manufacturing facility where the edible product is distributed, and a copy of the certificate kept either on-site, or made available during inspections if kept off-site.
vi. Hand-washing facilities shall be adequate and convenient and be furnished with running water at a suitable temperature. Hand- washing facilities shall be located in the facility in edible cannabis product preparation areas and where good sanitary practices require employees to wash and/or sanitize their hands and provide effective hand -cleaning and sanitizing preparations and sanitary towel service or suitable drying devices.
c. Packaging of Edibles.
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32 i. Edible cannabis products shall comply with State packaging requirements contained in California Code of Regulations Title 17, Division 1, as it may be amended.
d. Labeling.
i. Edible cannabis products shall comply with State labeling requirements contained in California Code of Regulations Title 17, Division 1, as it may be amended.:

8. Prohibited Activity. On-site consumption of cannabis or cannabis products is specifically prohibited on all commercial cannabis premises at all times.

Cannabis may not be inhaled, smoked, eaten, ingested, or otherwise consumed anywhere on the property of a commercial cannabis business, in the parking areas of the business, or in those areas restricted under the provisions of California Health and Safety Code Section 11362.3.

L. Fees and Taxes . All commercial cannabis businesses shall pay applicable fees and taxes, which may include one or more of the following:

1. Application Fees. The applicant shall pay all fee s required by the master fee schedule to cover the cost s of processing commercial cannabis business permits, including but not limited to use, design review, building, fire, and CBP permits.

2. Business License Fee. The business owner shall at all times maintain a current and valid business license and pay all b usiness taxes required by the City of Richmond Municipal Code , including but not limited to those due under Richmond Municipal Code Section 7.04.139.

3. Commercial Cannabis Regulatory Fee. The business owner shall pay an annual regulatory fee to cover the cos ts of anticipated enforcement and inspections relating to the c annabis operation. The amount of the fee shall be set by Resolution of the City Council and be supported by the estimated additional costs of enforcement and monitoring associated with the c annabis operation.

The regulatory fee shall be due upon issuance of the CBP. The Regulatory Fee may be amended from time to time based upon actual costs.

4. All required taxes including sales and use taxes, business, payroll etc.

5. Additional cannabis -specific taxes approved by the voters of the City of Richmond.

M. Liability and Indemnification.

1. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this Section shall not become a personal liability of any public officer or employee of the City.

33 attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) (collectively called "action") against the City to attack, set aside, void or annual, any cannabis -related approvals and actions and stri ctly comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys' fees.

3. Within ten calendar days of the service of the pleadings upon the City of any action as specified in paragraph (H)(2) above, the permittee shall execute a letter of agreement with the City, acceptable to the Office of the City Attorney, which memorializes the above obligations. These obligations and the letter of agreement shall survive termination, extinguishment or invalidation of the cannabis-related approval. Failure to timely execute the letter of agreement does not relieve the applicant of any of the obligations contained in this section or any other requirements or performance or operating standards that may be imposed by the City.

N. Violations and Enforcement. In addition to Article 15.04.815 (Enforcement Provisions):

1. Any violation of this Section shall be subject to all Enforcement Provisions set forth in Article 15.04.815;

1.2. Any person violating any provision of this Section, including engaging in a commercial cannabis business without a CUP and CBP or knowingly or intentionally misrepresenting any material fact in procuring a CUP and CBP , shall be deemed guilty of a misdemeanor punishable by a fine of not more than $1,000.00 for each day or portion thereof of the violation or by imprisonment for not more than 12 months, or by both such fine and imprisonment;

2.3. Any violation of this Section shall be subject to injunctive relief, revocation of the certificate of occupancy for the property, disgorgement and payment to the City of any and all monies unlaw fully obtained, costs of abatement, costs of investigation, attorney fees, and any o ther relief or remedy available at law or equity; and

3.4. Any violation of any condition of a CUP or CBP for a commercial cannabis business, including failure to remit any fee s required to maintain the permits and/or failure to remit the quarterly gross receipt taxes, shall be grounds for permit suspension or revocation.

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EXHIBIT A: PROPOSED AMENDMENTS (CLEAN VERSION)

Page 1 of 33 ends

15.04.610.270 Marijuana/Cannabis Commercial Uses
Commercial Cannabis activities, including but not limited to cultivation, manufacturing, testing, distribution, and retail are subject to the standards and procedures of the Municipal Code, State Law, and the regulations set forth in these Zoning Regulations.

A. Applicability. These standards apply to all establishments that are involved in any commercial cannabis activity.

B. Definitions1. The following words or phrases, whenever used in this Section, have the following definitions:

1. A-license. A state license issued for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendations.

2. Attending Physician. An individual who possesses a license in good standing to practice medicine or osteopathy issued by the Medical Board of California or the Osteopathic Medical Board of California and who has taken responsibility for an aspect of the medical care, treatment, diagnosis, counseling, or referral of a patient and who has conducted a medical examination of that patient before recording in the patient's medical record the physician's assessment of whether the patient has a serious medical condition and whether the medical use of cannabis is appropriate.

3. Bureau of Cannabis Control (“the Bureau”). The bureau within the California Department of Consumer Affairs created to develop, administer and enforce comprehensive ru les for medicinal and adult -use cannabis in California. The Bureau is responsible for the regulation and licensing of all commercial cannabis retail, distribution, testing, microbusinesses and temporary cannabis events in California.

5. California Department of Public Health – Manufactured Cannabis Safety Branch (“the DPH”). A division of the California Department of Public Health, responsible for the regulation and licensing of all commercial cannabis manufacturing in California.

1 Additional terms, such as “applicant” and “person”, “permit” and “use”, are defined in Zoning and Subdivision Regulations, Series 100, General Provisions, and are not repeated here. 696

2 manufacture, salt, derivative, mixture, or preparat ion of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purposes of these zoning regulations, "cannabis" does not include "industrial hemp" as defi ned by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.

7. Cannabis Business. Establishments, properties, parcels, and/or structures involved in any commercial cannabis activity, including retailers, storefront retailers, non-storefront retailers, cultivators, manufacturers, testers, and distributors.

Equity Applicants apply to the program via formal application. The program prioritizes granting new cannabis retailer licenses to Equity Applicants.

9. Cannabis Plant. Any immature, flowering, or dried flower in accordance with State Law. Immature cannabis plant means a cannabis plant that has a first true leaf measuring greater than one half inch long from base to tip (if started from seed) or a mass of roots measuring greater than one half inch wide at its widest point (if vegetatively propagated), but which is not flowering.

Flowing cannabis plant means that a cannabis plant has formed a mass of pistils measuring greater than one half inch wide at its widest point. Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

10. Cannabis Products. Cannabis that has undergone a process wher eby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

11. Canopy. The designated area(s) at a l icensed cultivation site that contain mature plants at any point in time.

12. Collective. See Retail Facility.

13. Commercial Cannabis Activity. The cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of adult-use or medicinal cannabis or cannabis products, as provided for in this Ordinance and in accordance with State Law.

14. Cultivation. Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis within an enclosed structure.

16. Cultivator. An individual or business that plants, grows, harvest, dries, cures, grades, or trims cannabis within an enclosed structure. 697

3 17. Customer. A natural person 21 years of age or older, a natural person 18 years of age or older who poss esses a physician’s recommendation, or a qualified patient or a primary caregiver.

18. Delivery. The commercial transfer of cannabis or cannabis products from a retail or non-storefront retail facility to a customer.

19. Dispensary. See Retail Facility.

20. Distributor. A person or licensed entity engaged in the business of procuring, selling, storing, packaging, labeling, rolling and transporting cannabis or cannabis products from a licensed cultivator, manufacturer, or from any other State cannabis licensees for sale to any State Cannabis licensee, in accordance with State Law A distributor shall distribute only cannabis goods, cannabis accessories, and licensees’ branded merchandise or promotional materials.

21. Distribution. Means the procurement, sale, and transport of ca nnabis and cannabis products between licensees pursuant to Section 26000 of the California Business and Professions Code.

22. Edible Cannabis Products. Manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, bu t not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the California Food and Agricultural Code.

23. Enclosure. An area fully surrounded by a fence, wall, or other solid barrier that prevents access to cannabis. Enclosures must be equipped with a locked gate or door.

24. Equity Applicant. An individual or business who makes a formal application to be admitted and is accepted into the City’s Cannabis Equity Program.

25. Equity Business . A cannabis business with not less than 51% ownership interests held by equity applicants.

26. Greenhouse. A building, room, or structure, usually chiefly of transparent material, used for cultivation of cannabis which meets State requirements for mixed-light cultivation.

27. Indoor cultivation. The cultivation of cannabis within a permanent structure using exclusively artificial light or within any type of stru cture using artificial light.

28. License. A state issued cannabis license, which includes both an A-license and an M-license, as well as a testing laboratory license.

29. Licensee. Any person or entity holding a state issued commercial cannabis A- license or an M-license, and includes the holder of a cannabis testing laboratory license.

30. M-license. A state license issued for commercial cannabis activity involving medicinal cannabis.

31. Manager. A person with responsibility for the establishment, organization, registration, supervision, or oversight of the operation of a cannabis business, including but not limited to persons who perform the functions of president, 698

4 vice president, director, operating officer, financial officer, secretary, treasurer, or manager of the business.

32. Manufacturer. A State-licensee that manufactures cannabis by compounding, blending, extracting, infusing, or otherwise making or preparing cannabis products. “Manufacture” includes extraction, infusion, packaging or repackaging, and labeling or relabeling packages of cannabis products, in accordance with State Law.

33. Marijuana. See Cannabis.

34. Mixed-Light Cultivation. The cultivation of mature cannabis in a greenhouse, glasshouse, conservatory, or other similar structure using light deprivation and/or one of the artificial lighting models described below:
a. Mixed-light Tier 1. the use of artificial light at a rate of six watts per square foot or less;
b. Mixed-light Tier 2. the use of artificial light at a rate above six and below or equal to twenty-five watts per square foot.

35. Non-Storefront Retail Facility. A facility that is closed to the public where cannabis, cannabis products, edible cannabis products, or devices for the use of cannabis or cannabis products are offered for retail sale exclusively by delivery, in accordance with State Law.

36. Owner or Ownership interest. An interest held by a person who is an owner as defined by State of California commercial cannabis regulations or who has a financial interest in the commercial cannabis business of 5% or more.

37. Personal Cultivation. The cultivation of no more than six (6) cannabis plants conducted by an individual strictly for that individual’s personal use, possession, processing, transporting, or giving away without any compensation whatsoever in accordance with State law, including but not l imited to Health and Safety Code sections 11362.1 and 11362.2, as may be amended. Personal cultivation also means and includes cultivation of medic inal cannabis conducted by a qualified patient exclusively for his or her personal medic inal use, and cultiva tion conducted by a primary caregiver for the personal medicinal purposes of no more than five specified qualified patients for whom he or she is the primary caregiver, in accordance with State law, including Health and Safety Code sections 11362.7 and 11362.765, as may be amended.

38. Primary Caregiver. The individual, designated by a qualified patient or by a person with an identification card issued pursuant to California Health and Safety Code Section 11362.7, who has consistently assumed responsibility for the housing, health, or safety of that patient or person. The primary caregiver may be a licensed clinic, residential care facility, hospice, or home health agency.
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5 39. Private Residence . A house, apartment unit, mobile home, or any other similar dwelling.

40. Qualified Patient. A person who is entitled to the protections of California Health and Safety Code Section 11362.5, for patients who obtain and use cannabis for medic inal purposes upon the recommendation of an attending physician, whether or not that person applied for and received a valid identification card issued pursuant to State Law.

41. Retail Facility. A facility where cannabis, cannabis products, edible cannabis products, or devices for the use of cannabis or cannabis products are offered for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale.

42. Retailers. An individua l, retail facility , storefront retail facility, and non - storefront retail facility.

43. State. The State of California.

44. Storefront Retail Facility. A retail facility that has a physical location, including an address where commercial cannabis activities are conducted, and that sells cannabis goods to customers at its premises or by delivery.

45. Testing Laboratory. The facility where tests are performed on cannabis or cannabis products and that holds a valid certificate of accreditation and license from the Bureau, if required.

46. Testers. An individual or business that performs tests on cannabis or cannabis products and that holds a valid certificate or accreditation and license from the Bureau, if required.

47. Volatile Solvent . Is the same as defined by the California Department of Health in §40100 of the California Code of Regulations , as may be amended, and means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.

C. Permits Required. A Conditional Use Permit (CUP) and a Cannabis Business Permit (CBP) are both required for all commercial cannabis activities prior to operation.

Cannabis businesses shall first obtain a CUP by submitting an application pursuant to Section 15.04.610.270 (H) of this Article and any application forms and fees required in accordance with Article 15.04.803 as a requisite for obtaining a CBP. The provisions of Article 15.04.806 Use Permits apply, including but not limited to procedures for appeals, modifications, and approval. Once building permits are obtained and finaled, if required, the required State licenses are obtained, and City Regulatory fees paid, a CBP will be granted. CUPs and CBPs will only be granted to entities operating legally according to the Medic inal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), other applicable State Law, and the State regulations. Reasonable conditions of approval may be imposed, including but not limited to requirements for permits from the County for retail sales of edible cannabis products and from the State for food product manufacturing.
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6 D. Operating Without Permits. It shall be unlawful for any person as defined by this Article to engage in, conduct or carry on, in or upon any premises within the City any commercial cannabis business without a CUP and CBP. Persons operating in violation of this Article shall be given an amnesty period to come into compliance by submitting a complete CUP application within one hundred twenty (120) days of the effective date of this Article and securing both the required CUP and CBP within one hundred eighty ( 180) days of application submittal . Failure to submit a complete CUP application within the amnesty period will result in further enforcement. Any persons in violation of this subsection shall be prohibited from applying for a CUP for one year anywhere in the City of Richmond. In addition, commercial cannabis uses shall be prohibited on the subject property for one year.

E. Promulgation of Regulations, Standards and Other Legal Duties. In addition to any regulations adopted by the City Council, the Director is authorized to establish administratively any additional rules, regulations and standards governing the issuance, denial or renewal of Cannabis Business Permits, the ongoing operation of Cannabis Businesses and the City 's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Article. This authority extends to situations where modifications in State cannabis laws or changes in license types authorized by the State are deemed essential for the effective implementation of the objectives outlined in this Article.

F. Locations Where Allowed and Number Allowed.

1. Cultivators, Manufacturers, Mixed-light Cultivators, Testing Laboratories, and Distributors. All commercial cannabis cultivation, manufacturing, mixed-light cultivation, testing, and distributor operations shall be conditionally permitted as provided for in the City’s Land Use Regulations Tables in Chapter 15.04.

2. Retail Facilities.
a. Existing Retail Facilities. Existing retail facilities may expand at their current location subject to Planning Commission approval of a modified CUP, upon making the following findings:
i. The retail facility has operated in compliance with all local and state regulations; and
ii. The expanded use will not negatively impact the surroundin g community.
b. New Retail Facilities. Any new commercial cannabis retail and non- storefront retail facilities are only allowed to locate in a CR , Regional Commercial Zoning District with a conditional use permit unless, following a public hearing, the Planning Commission makes all of the following findings to authorize a retail facility to locate on a site in the CG General Commercial Zoning District:
i. The retail facility has demonstrated that it considered locations within the CR District and found no location meeting the requirements of this section that serves the needs of its customers; and
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7 ii. The proposed location within the CG District would complement the surrounding c ommunity while providing
necessary services to its customers; and
iii. The proposed location is not abutting a residential use.

3. Distance from Schools, Parks, Community Centers, Youth Center, Child-Care Center, or Nursery School.
a. All commercial cannabis activity must be located a minimum of 1,500 feet from any public or private high school and a minimum of 600 feet from any public or private kindergarten, elementary, middle or junior high school that is in existence at the time the permit is issued. b. All commercial cannabis activity shall be located a minimum of 600 feet from any park, community center, youth center, and public or private child-care center that is in existence at the time the permit is issued.
c. Following a public hearing, the Planning Comm ission may make exceptions to the distance requirements for all commercial activities if all of the following findings are made based on specific facts:
i. The location, design and proposed operating characteristics of the cannabis business is such that it i s highly improbable that persons on, in or travelling to or from nearby parks,
community centers, youth centers, or child-care centers would be able to view persons in, entering, or leaving the cannabis facility; and
ii. Allowing the cannabis business to locate within 1,500 feet of a public or private high school or within 600 feet of a park, community center, youth center, and public or private child - care center, will not grant the cannabis business a special privilege not available to other commercial cannabis
businesses within the City; and
iii. The cannabis business has demonstrated that it considered other locations and selected the location that would have the least negative impact on the surrounding community while providing necessary services to its customers.

4. Number of Commercial Cannabis Businesses.
a. No more than six (6) storefront retail facilities and two (2) non - storefront retail facilit ies shall be permitted or allowed to operate in the City. Of these retail facilities, two (2) storefront retail facilities and two (2) non-storefront retail facilities shall be designated to be owned by new Equity Applicants or Equity Businesses, who are not currently permitted to operate a retail cannabis facility in the City. The City has established a competitive selection process in Section 15.04.601.270 (J)(1) of this Article to objectively award permits for which there are a limited number of permits available, such as for retail facilities. All 702

8 competitive-based considerations shall be incl uded with the application forms.
b. There shall be no limit on the number of commercial cannabis cultivators, distributors, testing laboratories, or manufacturing businesses in the City as long as they obtain v alid State and local permits and licenses, including CUP and CBP from the City of Richmond for each location.
c. This section is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the City. Nothing in this Article creates a mandate that the City must issue any or all of the cannabis business permits.

G. Delivery of Commercial Cannabis and Cannabis Products. a. The delivery of commercial cannabis or cannabis products from a State licensed retail facility or non-storefront retail facility to a customer is permitted, provided such deliveries are conducted in accordance with this Article and State law , including obtaining a Richmond Business license. All other unpermitted and unlicensed delivery services within the City are prohibited.
b. Existing permitted retail cannabis businesses operating within the City are required to obtain a CUP modification before conducting delivery activities.

H. Conditional Use Permit Application Process.

1. Conditional Use Permit Applications. In addition to any application forms and fees required in accordance with Article 15.04.803, an application for a commercial cannabis business must provide specific information, as determined by the Zoning Director, based on this Section, Sta te law and regulations, and County input relative to edible cannabis products. This information includes, but is not limited to, the following:
a. Requirements for All Commercial Cannabis Businesses. A commercial cannabis business is required to provide the following information in support of its permit application.
i. Information Regarding the Proposed Property.
(1) The address of the property where the proposed
commercial cannabis business will operate.
(2) A site plan with fully dimensioned interior and exterior floor plans, including electrical, mechanical, plumbing, parking, and disabled access compliance pursuant to
Title 24 of the State of California Code of Regulations and the federal Americans with Dis abilities Act. For a retail facility , the site plan must show that there are separate rooms or partitioned areas within the retail
facility for the receipt of supplies and for the delivery of cannabis to customers.
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9 (3) Exterior photographs of the entrance(s), exit(s), street frontage(s), parking, front, rear and side(s) of the site. (4) Photographs depicting the entire existing interior of buildings on the site.
(5) If the site is being rented or leased or is being
purchased under contract, a copy of such lease or
contract.
(6) If the site is being rented or leased, written proof that the property owner, and landlord if applicable, were
given notice that the property will be used as a
commercial cannabis business, and that the property
owner, and landlord if applicable, agree(s) to said
operations. If the retail facility is to be a subtenant, then "landlord" shall mean the primary tenant.
ii. Information Regarding Each Business Applicant, Owner and Manager. For each business applicant, owner, and manager, the following information must be provided, to the extent applicable:
(1) The name, address, telephone number, title and
function(s);
(2) A fully legible copy of one valid government -issued form of photo identification, such as a driver's license; and
(3) A summary criminal history ("LiveScan") prepared by the Richmond Police Department not more than thirty
(30) days prior to the date of application.
iii. Background Investigation of Applicants, Owners and Managers. The applicant, each owner, and proposed manager shall undergo a criminal background investigation and shall submit the name, address, telephone number, title, primary responsibility(ies), and a valid government - issued form of identification, together with any other related information requested by the Chief of Police for the purpose of conducting mandatory background checks. This includes but is not limited to completing a LiveScan with the Richmond Police
Department no more than 30 days from the date of the
application. No person may be issued a CUP or CBP unless they have first cleared the background check and submitted LiveScan results that are clean and clear of any of the convictions listed below . Neither the applicant, each owner, nor any proposed or prospective manager shall have been convicted of:
(1) A serious or v iolent felony conviction, as specified in Penal Code Section 667.5(c) or Section 1192.7(c);
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10 (2) A felony conviction involving dishonesty, fraud or deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in Cal.

Penal Code §§ 186.11, 470, 484, and 504a, respectively; or equivalent offenses in other states;
(3) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away,
preparing for sale, or peddling, any controlled
substance to a minor; or selling, offering to sell,
furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or
(4) A conviction of illegal use, possession, transportation, distribution, or similar activities related to con trolled substances, as defined in the Federal Controlled
Substances Act, not including cannabis -related
offenses for which the conviction occurred after the
passage of the Compassionate Use Act of 1996.

For purposes of this Section, conviction includes a p lea or verdict of guilty or a conviction following plea of nolo contendere. Any conviction under this section is grounds for denial of the CUP and CBP.
iv. Information Regarding the Commercial Cannabis Business. (1) Written confirmation as to whether the commercial
cannabis business, or a commercial cannabis business
with one or more owner or managers in common with
the applicant, previously operated in the City or any
other county, city or state under a similar
license/permit, and whether the business applicant
ever had such a license/permit revoked or suspended
and the reason(s) therefore.
(2) The name and address of the commercial cannabis
business’ current Agent for Service of Process.
(3) Information pertaining to a Notice of Violation for unpermitted cannabis operations or any cannabis
related enforcement violations or within the City.
v. Plan for U nsold Cannabis. A plan for the disposal of any unsold cannabis or cannabis product must be submitted that renders or prevents any portion thereof from being
recognizable and useable by any person or animal.
vi. Neighborhood Responsibility Plan. A neighborhood
responsibility plan that demonstrates how the business will fulfill its responsibilities to the neighborhood, including neighborhood outreach, methods for future communication, and dispute resolution.
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11 vii. Security Plan. A security plan indicating how the applicant will comply with the requirements of this Section and any other applicable law, rule, or regulation.
viii. Affirmation that the Application is True. A statement dated and signed by each management member, under penalty of
perjury, that the management member has personal knowledge of the information contained in the application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the management member(s).
b. Supplemental Application Requirements for Retail Facilities. In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis retail facilities. i. Security Plan. A retail facility’s security plan must include procedures for verifying identification of customers and primary caregivers both before entering the retail facility and again before receiving cannabis; the number, location and hours of security guards; and a theft prevention plan including a detailed description of all surveillance and video equipment, location and coverage of cameras and how law enforcement or their representatives will be given real-time and stored access. ii. Daily Customer Limits . A retail facility or non -storefront facility shall adhere to daily limits on adult -use and medicinal cannabis and cannabis products by its customers in accordance to State law.
c. Supplemental Application Requirements for Manufacturers. In addition to the standards applicable to all commercial cannabis businesses, the following apply to commercial cannabis manufacturing operations. i. Safety of Manuf acturing Process. A commercial cannabis manufacturer must demonstrate one or both of the following:
(1) The only manufacturing processes used are either
solventless or employ only nonflammable, nontoxic
solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21
U.S.C. Sec. 301 et seq.).
(2) The manufacturing processes only uses solvents
exclusively within a closed -loop system that meets all of the following requirements:
(a) The system uses only solvents that are generally
recognized as safe pursuant to the federal Food,
Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et
seq.).
(b) The system is designed to recapture and
contain solvents during the manufacturing
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12 process and otherwise prevent the off -gassing
of solvents into the atmosphere to mitigate the
risks of ignition and explosion during the
manufacturing process.
(c) A licensed engineer certifies that the system
was commercially manufactured, is safe for its
intended use, and was built to codes of
recognized and generally accepted good
engineering practices, including, but not
limited to, the American Society of Mechanical
Engineers, the American National Standards
Institute, Underwriters Laboratories, the
American Society for Testing and Materials, or
OSHA Nationally Recognized Testing
Laboratories.
(d) The system has a certification document th at
contains the signature and stamp of a
professional engineer and the serial number of
the extraction unit being certified and that the
certification is renewed either annually or
according to the manufacturer’s
recommendations.
ii. Fire, Safety, and Building Code Requirements. The manufacturer must meet all State, county and locally required fire, safety, and building code requirements.
iii. Approval from Richmond Fire Prevention Services Division or designee . The commercial cannabis manufacturer must receive and maintain approval from the Richmond Fire
Prevention Services Division for the closed-loop system and for other equipment used for manufacturing and extraction operations, per guidelines adopted by the Richmond Fire Prevention Services Division.
iv. Edible Cannabis Products. Commercial cannabis
manufacturers that prepare edible cannabis products must demonstrate compliance with State, County and local
requirements regarding the preparation, distribution, labeling, and sale of food.
d. Supplemental Application R equirements for Cultivators and Manufacturers. In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis cultivation and manufacturing operations.
i. Plans for Use of Renewable El ectricity. All cultivation and manufacturing operations must submit detailed plans
demonstrating that the electricity used in the cultivation and manufacturing operations is from a renewable energy source or arrangements have been made to offset use of
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13 nonrenewable electrical energy with renewable energy from another source. If written evidence of enrollment in the Deep Green 100 percent renewable energy program administered by Marin Clean Energy (MCE) is provided, no further details need to be submitted wi th the application. Enrollment shall be maintained, and evidence provided annually in order to renew CBP.
ii. Plans for Water Conservation. All cultivation and
manufacturing operations must submit detailed plans
demonstrating strict water conservation methods will be instituted and maintained at all times, and such plans must include records of monthly water consumption. These plans also must show that the cultivation facility will be equipped with water collection and filtration systems to reduce irrigation water to the maximum extent possible as determined by the Zoning Director or the State, if its regulations are more restrictive.
iii. Plans fo r Wastewater. All cultivation and manufacturing operations must demonstrate compliance with the limitations on discharge into the City’s wastewater system, as set forth in Richmond Municipal Code Chapter 12.18. This shall include the su bmittal of an Indust rial User Permit Application (Baseline Monitoring Report) to the Water Resource Recovery Department.
iv. Plans for Stormwater. All cultivation and manufacturing operations must demonstrate compliance with the limitations on discharge into t he City’s municipal separate storm sewer system (MS4), as set forth in Richmond Municipal Code
Chapter 12.22. This shall include any and all provisions required under the Municipal Regional Permit (NPDES Permit No. CAS612008.
v. Plans to Prevent Mold. All cultivation and manufacturing operations must submit a plan that specifies the methods to be used to prevent the growth of harmful mold.
vi. Ventilation Plan. All cultivation and manufacturing operations must submit det ailed information about the proposed
ventilation system, including technical specifications indicating that the system is capable of preventing the release into the atmosphere of cannabis odors from the cultivation or
manufacturing operation.

14 in ownership, management, sources of electricity, or operations, from those described in the original application.

3. Expiration and Extension . A commercial cannabis CUP is subject to the expiration and extension procedures in RMC Section 15.04.803.110.

4. Modification of Permit Conditions. Modifications to the permit or the conditions of approval may be requested in accordance with Section

15.04.803.110 and with prior notification and approval from the appropriate State cannabis regulatory agency.

5. Denial, Revocation or Suspension , and Renewal of Conditional Use Permit.
a. The procedures in Article 15.04.803 (Common Procedures) apply. b. The CUP for a commercial cannabis business may be denied, revoked, suspended, or not renewed if it is determined that one or more of the following circumstances exist:
i. The State denies or revokes a State license for the operation of commercial cannabis business;
ii. The CUP application contains a false or misleading statement or omission of material fact;
iii. The commercial cannabis business has failed to conform to the requirements of this Article, this Code, State law, any regulations adopted pursuant to this Article, or any permit conditions;
iv. The applicant, owner, permittee or any of its managers has any unpaid and overdu e administrative penalties imposed for violations of this Article;
v. The applicant, owner, or permittee has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked;
vi. The state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis business permit;
vii. The applicant, owner, or permittee is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate
agencies;
viii. The applicant, permittee, owner, or any of its managers have failed to comply with the requirements provided in Section

15.04.610.270(C);
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15 ix. The applicant, permittee, owner, or any managers fail to submit supplemental applications required for certain types o f commercial cannabis businesses; or
x. The Livescan/background investigation results indicate that one or more of the criteria for set forth in Section

15.04.610.270(H)(1)(a)(iii) exists.
c. Additional Provisions For Revocation.
i. The procedures and grounds for revocation provided in RMC Section 15.04.803.130 (Revocation) apply.
ii. The CUP for a commercial cannabis business may be revoked if it is determined that one or more of the following
circumstances exist:
(1) After the business is operational, the business ceases to be in regular and continuous operation for ninety (90)
days.
d. Timing of Consideration After Revocation or Suspension of CUP. Whenever a CUP for a commercial cannabis business has been revoked or suspended, no permit application by any of the owners or managers of that commercial cannabis business shall be considered for a period of three years from the date that the notice of the revocation or suspension was mailed to the business owner.

I. Cannabis Business Permit (CBP) Application Process.

16 vi. A copy of the cannabis business operating con ditions, containing a statement dated and signed by each owner and manager, under penalty of perjury, that they have read, understand, and shall ensure compliance with all Operating Standards set forth in this Article.
vii. A statement dated and signed by each owner and manager, under the penalty of perjury, that the information regarding each business owner and manager submitted with the CUP
application is current and accurate, or proof that Zoning Administrator approval has been obtained for any change s in management or ownership.
viii. A valid seller's permit from the California Department of Tax and Fee Administration or successor agency.
ix. Proof that payment of all City of Richmond fees and taxes is current.
x. Documents required under 15.04.610.270(H)(1)(a)(ii) and (iii).

4. Denial of Cannabis Business Permit. If the Director determines in the initial screening that an application does not meet minimum eligibility requirements, the applicant shall be notified in writing that the application has been denied. Within 5 business days of the date of the decision, an applicant may file a request for immediate reconsideration. The Director shall schedule a meeting with the applicant within 10 business days of the r equest for reconsideration at which time the applicant may submit information demonstrating that the applicant meets the minimum eligibility requirements.

17 d. The applicant has not received a conditional use permit from the City for the corresponding cannabis business;
e. The applicant or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article; f. Applicant has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked; g. The applicant was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violation in a timely manner;
h. The applicant fails or is otherwise unable to obtain its State of California license;
i. The applicant is delinquent in payment of Federal, State or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies;
j. Operation of the proposed cannabis business site, as represented in the application, is a threat to the public health, safety, or welfare; k. The applicant has failed to comply with the requirements provided in Section 15.04.610.270(C);
l. The Livescan/background investigation results indicate that one or more of the criteria for denial set forth in Section

15.04.610.270(H)(1)(a)(iii) exists;
m. The applicant has failed to comply with the terms and conditions of their CUP; or
n. The applicant has refused to allow or otherwise fail ed to make the cannabis business available for City inspection.

5. Cannabis Business Permit Annual Renewal. Applications for the renewal of a permit shall be filed with the Zoning Administrator or designee at least sixty (60) calendar days before the expiration of the current permit. Any cannabis business allowing their permit to lapse, or which permit expired during a suspension shall be required to submit a new application, pay the corresponding application fees.
a. The renewal application shall contain all the information required for Cannabis Business Permit applications. The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Article.
b. As part of the rene wal process, upon the City’s receipt of a renewal application, the City h as the right to conduct a City inspection . The purpose of this inspection is to ensure that the cannabis business 712

18 remains in compliance with all local and state regulations, as well as the terms and conditions specified in the Conditional Use Permit (CUP).

The inspection findings will be taken into account during the permit renewal decision-making process and inspection findings may serve as a ground for rejection of the renewal application.
c. An application for renewal of a cannabis business permit shall be rejected if any of the following exists:
i. The application is incomplete, filed less than 60 days before its expiration or for a shorter time period which shall be at the discretion of the Director, or is not responsive to the requirements of this Article.
ii. The application contains a false or misleading statement or omission of material fact.
iii. The permittee refuses to allow or otherwise fails to make the cannabis business available for City inspection upon
submission of the CBP renewal application.
iv. The Director determines that the inspection findings are grounds for rejection.
v. The CBP is suspended or revoked at the time of the
application.
vi. The cannabis business has not been in regular and continuous operation in the four months prior to the renewal application or the approved extension of the deadline from the Director. vii. The commercial cannabis business has failed to conform to the requirements of this Article, this Code, State law, any regulations adopted pursuant to this Article, or any permit conditions.
viii. The permittee was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violations in a timely manner.
ix. The permittee or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article.
x. The permittee has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis - related permit(s) revoked.
xi. The permittee fails or is unable to renew its State of California license.
xii. If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements 713

19 of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis business permit.
xiii. The permittee is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the
delinquency when notified by the appropriate agencies.
xiv. The permittee has failed to comply with the requirements provided in Section 15.04.610.270(C).
xv. The Livescan/backgro und investigation results indicate that one or more of the criteria for set forth in Section

15.04.610.270(H)(1)(a)(iii) exists.
xvi. The permittee has failed to comply with the terms and conditions of their CUP.
d. The Director is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the Director is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety, or welfare. e. If a renewal application is denied, a person may file a new application pursuant to this Article not sooner than one year from the date of the denial.

6. Transfer of Cannabis Business Permit/ Business Modifications. A CBP does not run with the land or business. A CBP is not transferable or assignable to another person or owner, except as approved by the Zoning Administrator.

Notwithstanding the foregoing, the Zoning Administrator may administratively approve any changes in management or ownership or change in business name or structure and may require additional background check(s) or additional information for such approvals.

7. Revocation or Suspension of Cannabis Business Permit. Any CBP issued under this section may be immediately suspended or not renewed for any of the reasons listed below or above in Section 15.04.610.270(I)(5)(c)(i). Any CBP issued under this ordinance may be revoked by the City following notice and opportunity for a hearing before the Zoning Administrator or designee for any of the following reasons:
a. A cannabis business fails to comply with the requirements of this Article or any conditions of approval of CUP.
b. A cannabis business’s State license for commercial cannabis operations is revoked, terminated or not renewed.
c. The cannabis business’s State license for commercial cannabis operations is suspended. The City shall not reinstate the CBP until documentation is received showing that the State license has been reinstated or reissued. It shall be up to the City’s discretion whether the City reinstates any permit.
714

20 d. The cannabis business fails to become operative within one year of obtaining its CBP.
e. Once operational, the business ceases to be in regular and continuous operation for ninety (90) days unless given prior approval by the City for extenuating and unusual circumstances.
f. State law permitting the use for which the license was issued is amended or repealed resulting in the prohibition of such use, or the City receives cre dible information that the federal government will commence enforcement measures against such businesses and/or local governments that permit them.
g. Circumstances under which the CBP was granted have significantly changed and the public health, safety and w elfare require the suspension, revocation, or modification.
h. The CBP was granted, in whole or part, on the basis of a misrepresentation or omission of a material statement in the permit application.
i. The cannabis business is not current on City taxes or Fees. j. The cannabis business is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies
k. The owner was found to operate another cannabis facility illegally within the City.
l. The owner or any managers refuse to allow or otherwise fail to make the cannabis business available for City inspection.
m. The cannabis business has failed to conform to the requirements of this Article, this Code, State law, any regulations adopte d pursuant to this Article, or any permit conditions.
n. The owner or any manager was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violations in a timely manner.
o. The owner or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article. p. The owner has had a State or local cannabis -related land use or business permit revoked; or an y of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked. q. The owner or any of its managers have failed to comply with the requirements provided in Section 15.04.610.270(C).
r. The Livescan/background investiga tion results indicate that one or more of the criteria for set forth in Section 15.04.610.270(H)(1)(a)(iii) exists.
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21 J. Competitive Selection Process. The City has established a competitive selection process to objectively award permits for which there is a limited number of permits available, such as for retail facilities.

1. Application Procedures and Requirements. By resolution the City Council shall adopt procedure guidelines and review criteria for the City's evaluation of cannabis business permit applications.
a. The procedure guidelines shall provide the process for soliciting applications including time frames, limitations, requirements, forms, and rules for completing applications.
b. The review criteria shall include detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to particular sets of criteria.
c. The Director shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the procedures guidelines and review criteria.
d. The City reserves the right to reject any or all applications for a cannabis business permit. Prior to such permit issuance, the City may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commi tment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Article, ma y be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application.

In addition to a failure to comply with other requirements in this Article, an application may be rejected for any of the following reasons:
i. The application was received after the designated time and date of the deadline.
ii. The application did not contain the required elements, exhibits, or was not organized in the required format.
iii. The application was considered not fully responsive to the request for a permit application.

2. Competitive Application Period. In the event that a permit for a commercial cannabis activity with a limited permit number becomes available, the Director shall open the competitive application period and make permit applications available.
a. Notice of the competitive selection period shall be published by means determined necessary by the Director to provide public notice of the opportunity to apply.
b. The competit ive application period shall be a minimum thirty (30) calendar days from the date the applications are released. Should the 716

22 last day fall on a day when City Hall is closed, the application period shall be extended to the next open day.
c. Following the appl ication period, the Director or designee shall stop accepting applications and review all applications received.

3. Initial Application Review. The Director or designee shall determine whether each application demonstrates compliance with minimum requirements required in the permit application and be entered into a pool of applicants for the Final Application Review and Scoring. These requirements include but are not limited to:
a. Application was submitted during the application period. b. Application forms are fil led out completely and demonstrate compliance with minimum requirements required in the permit application.
c. Any application forms required in accordance with Article 15.04.803 are completed and required fees per master fee schedule are paid. d. A signed state ment that the proposed location of the commercial cannabis business on the application meets the zoning criteria established in this Article including, but not limited to, any and all sensitive use separation criteria required by this Article.

4. Final Applic ation Review and Scoring. The Director or designee, after reviewing the applications approved in the Initial Application Review shall convene a Selection Panel composed of the Fire, Police, Finance and Planning, or their designees, to make the final decision, based on the priority point system to objectively award the top applicant(s). A complete description of the priority point system and all priority point considerations shall be included with the application forms.

23 relevant State and local laws and County regulations regarding the preparation, distribution, labeling and sale of such items. d. Job Opportunities for Richmond Residents. All commercial cannabis business shall provide maximum feasible opportunities for Richmond residents to apply for jobs through outreach, advertising, and contacts with local job centers. The City encourages “local hires” whenever possible, consistent with General Plan policies and State and federal employment law. Commercial cannabis businesses shall coordinate hiring opportunities with the City’s Employment and Training Department.
e. Exterior Lighting. Exterior building and parking area lighting at the commercial cannabis businesses must be in compliance with all applicable provisions of Article 15.04.604.
f. Roof Hatches. The commercial cannabis business’ windows and roof hatches shall be secured so as to prevent unauthorized entry; equipped with latches that may be released quickly from the inside to allow exit in the event of emergency; and comply with all applicable Building and Fire Code provisions.
g. Ventilation. The commercial cannabis business must provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the property is not detected outside the property, anywhere on adjacent property or public rights -of-way, or within any other unit located within the same buil ding as the cannabis retail facility, cultivation site, cannabis product manufacturer or any other subsequently approved cannabis business.
h. Video Surveillance System . The commercial cannabis business must be monitored at all times by digital surveillance system for security purposes. The digital surveillance system must be of adequate quality, color rendition and resolution in accordance to State Law. The cameras shall record continuously 24 hours per day at a minimum of 15 frames per second and shall be maintained at the property for a minimum of 90 calendar days. Failure to maintain the cameras in good working condition at all times is a violation of this Section and cause for permit revocation or suspension.
i. Alarm System. A permittee shall maintain an alarm system as defined in Business and Professions Code section 7590.1(n) at the licensed premises an in accordance with California Code of Regulations Title 16, Division 42.
j. Consent to Inspection. Authorized City, County, and State representatives may enter the location of a cannabis business at any time, without notice, and inspect the location of any cannabis business as well as any recordings and records required to be maintained pursuant to this Article or under applicable provisions of state law. It is unlawful and cause for immediate suspension or revocation of the CBP for any property owner, landlord, lessee, commercial cannabis business, 718

24 and/or its owner, agent, employee to refuse to allow, impede, obstruct or interfere with, or otherwise not allow an inspection, review or copy records, recordings or other documents required to be maintained by a cannabis business under this Article or under state or local law. It is also unlawful for a person to conceal , destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis business under this Article or under state or local law.
k. Restrictions on Access and Sale. No commercial cannabis retail facility shall cause or permit the access, sale, or exchange of cannabis to any person who is not 21 years of age or a qualified patient who is 18 years of age or older. No commercial cannabis manufacturer, distributor, testing laboratory, or cultivator shall cause, permit or allow any sale, distribution or exchange of cannabis to any person at the manufacturing, testing, distribution, or cultivation location, nor shall the manufacturer, testing laboratory, distributor, or cultivator permi t any walk-ins or allow any person into the site, unless such person is authorized to engage in commercial cannabis business under State and local law.
l. Visibility of Cannabis. No cannabis or cannabis products on the site of a commercial cannabis business s hall be visible with the naked eye from any adjacent public or private property, nor shall commercial cannabis or commercial cannabis products be visible from the building exterior. No cultivation shall occur at the retail facility’s location unless the business owner has the appropriate local and State permits, and the area devoted to the cultivation is secured from public access by means of a locked gate and any other security measures necessary to prevent unauthorized entry, and has been inspected and ap proved by the Richmond Fire Prevention Services Division and Richmond Building Departments.
m. Age Restriction. Employees or persons retained by a permittee to work within or on a permitted premise or to handle cannabis goods shall be at least 21 years of ag e. No customer under the age of 21 shall be allowed at an adult-use cannabis business and no person under the age of 18 shall be allowed at a medicinal cannabis business. n. No Alcoholic Beverages or Tobacco Products . No commercial cannabis business and/or commercial cannabis permittee shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco products at a commercial cannabis business or its parking area, except that employees of the commercial cannabis business and/or commercial cannabis permittee may consume tobacco products in outdoor areas designated in accordance with applicable provisions of the Richmond Municipal Code and State law.
o. No Cannabis Consumption. No commercial cannabis business and/or commercial cannabis permittee shall cause or permit the smoking, 719

25 ingesting, or otherwise consuming cannabis on the premises of a commercial cannabis business or in its parking area.
p. Secure Storage. All cannabis and cannabis products shall be stored on - site in structures that are completely enclosed, in a locked vault or safe that is not bolted to the floor, or in any other secured storage structure.

No off-site storage is allowed.
q. No Retail Sales in Cultivation, Distribution, Testing or Manufacturing Facilities.

26 cannabis shipments distributed t o the facility, as
required by the State’s track and trace system.
(2) Copies of the prohibited activity checklist, available from the Richmond Police Department, containing a
statement dated and signed by each manage r, under
penalty of perjury, that they read, understand and shall not engage in any prohibited activity.
(3) Evidence of: (a) verification that all manufactured products are manufactured, packaged, and labeled in
compliance with all applicable State and local laws; and (b) laboratory testing as required by State and local laws. iii. A manufacturer shall maintain the following records on the property:
(1) Evidence of: (a) verification that all cannabis products manufactured and packaged at the location are
manufactured, packaged, and labeled in compliance
with all applicable state and local laws; and (b)
laboratory testing as required by State and local laws. (2) A list of any commercial cannabis distributor that the manufacturer has provided or intends to provide its
product to. The list shall include the name of the
distributor, its address, the date the cannabis product was sold or transferred to the distributor, and the type and amount of the product that was distributed as
required by the State’s track and trace program.
iv. A cultivator shall maintain the following records on the property:
(1) The current address of all sites at which cannabis is cultivated.
(2) An inventory record documenting the dates and
amounts of cannabis cultivated at the proper ty, the
daily amounts of cannabis stored on the property, and
an inventory record of all cannabis transferred to a
commercial cannabis distributor . The inventory
records shall include total plants grown and total
weight of cannabis cultivated by the cultivator, the total weight of all cannabis sold or transferred to a
distributor, and receipts and documents detailing the
sale or transfer of cannabis as required by the State’s track and trace program.
(3) Copies of the prohibited activity checklist, available from the Richmond Police Department, containing a
statement dated and signed by the permittee(s) for the
cultivation site, under penalty of perjury, that they read, 721

27 understand and shall not engage in a ny prohibited
activity.
(4) Evidence to verify that all cannabis is cultivated in compliance with all applicable state and local laws.
v. A distributor shall maintain the following records on the property:
(1) A list of any commercial cannabis businesses that the distributor has provided or intends to provide its
product to. The list shall include the name of the
cannabis business , its address, the date the cannabis
product was sold or transferred to the business, and
the type and amount of the product that was
distributed as required by the State’s track and trace
program.
vi. A commercial cannabis business that produces edible cannabis products shall maintain the following records on the property:
(1) Proof of inspection s and approvals by Contra Costa Environmental Health Department and the County
Health Officer for food manufacturers, packagers
and/or distributors , when such inspections or
approvals become required.
(2) Producers of edible cannabis products shall maintain a written or computerized log documenting:
(a) The source of the cannabis used in each batch
of product;
(b) The contaminant testing date; and
(c) The testing facility for the cannabis.
s. Use of Pesticides. No pesticides or insecticides that are prohibited by applicable law for fertilization or production of edible produce may be used on any cannabis cultivated, produced, or distributed by a commercial cannabis business. A commercial cannabis business shall comply with all applicable laws regarding use of pesticides. t. Disposal of Cannabis and Cannabis Byproducts. All cannabis and any product containing a usable form of cannabis must be made unusable and unrecognizable prior to removal from the business in compliance with all applicable State laws.
u. On-site Community Relations Contact. Commercial cannabis businesses must provide the Police Department and all residents, business es and property owners within 100 feet with the current name, phone number, secondary phone number and e -mail address of an on -site community relations contact person to whom notice of any operating problems associated with the commercial cannabis business may be reported.
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28 v. On-Site Manager. All commercial cannabis businesses must have an on- site manager, at each commercial cannabis business, who is responsible for overall operation at all times that employees are conducting operations, and provide the Police Department with contact information for such person, including a telephone number and e-mail address.
w. Discouraging Nuisance. Commercial cannabis businesses must take all reasonable steps to disc ourage and correct objectionable conditions that constitute a public or private nuisance in parking areas, sidewalks, alleys and areas surrounding the commercial cannabis business and adjacent properties. Such conditions include but are not limited to smoking, creating a noise disturbance, loitering, littering, and graffiti. x. State Licenses. Any commercial cannabis business that fails to obtain or qualify for the required State license, or is refused such license, shall immediately cease all operations in the City.
y. Testing and Labeling . All cannabis, cannabis products, and edible cannabis products, must be tested and labeled as follows and as required by State law.
i. Baked goods, such as cookies and brownies, shall be exempt from testing for contaminants. These products are still subject to testing for potency, as required for the label information, and must use cannabis or cannabis products that ha ve been tested for contaminants. All baked products must contain a list and warning of any known food allergens, like nuts, etc. and comply with CCR Title 17, Division 1, Chapter 13, §40254 and any other food safety requirement of local or State regulations.

29 b. Hours of Operation. A licensed cannabis retail facility or non-storefront retail facility may sell and deliver cannabis between the hours of 8:00 a.m. and 9:00 p.m.
c. Safety of Products. The retail facility must ensure that the cannabis, cannabis products, and edible cannabis it offers for sale are manufactured, packaged, tested, and labeled in compliance with all applicable state and local laws. No retail facility may obtain or distribute cannabis products from any commercial cannabis business unless such business has a valid permit or license issued by the Bureau and a California city or county.
d. Onsite Consumption. On-site consumption of cannabi s or cannabis products is specifically prohibited on the premises at all times.

Outdoor cultivation of cannabis is not permitted in any zoning district.

4. Supplemental Standards for Retail Facilities Engaged in Deliveries. a. Commercial cannabis deliveries may be made only from a commercial cannabis retail facility permitted by the City or from a State licensed retail facility outside of the City limits in compliance with this section, and in compliance with all State regulations.
b. All deliveries of cannabis goods shall be performed by a delivery employee of a retailer.
c. While carrying cannabis goods for delivery, a retai ler’s delivery employee shall ensure the cannabis goods are not visible to the public. d. Persons engaged in delivery of cannabis or cannabis products on behalf of a licensed retailer , shall adhere to the delivery vehicle requirements and restrictions on the amount of cannabis and cannabis goods stored in the vehicle during delivery as set forth under State law. e. No cannabis delivery vehicle shall display signs, decals or any other form of advertisement.

30 iii. The unique identifiers and batch number associated with the batch;
iv. A description of the cannabis goods with enough detail to easily identify the batch; and
v. The weight of or quantity of units in the batch.
c. Employee breakrooms, eating areas, changing facilities, and bathrooms shall be completely separated from the storage areas.
d. A distributor shall adhere to all requirements for transportation of cannabis goods as set forth in State law.

6. Supplemental Standards for Testing Laboratory Businesses. a. A permitted cannabis testing facility shall comply with all State regulations contained in California Code of Regulations Title 16, Division 42 and as it may be amended from time to time. b. Any cannabis testing facility must maintain all c ertifications required by the State.
c. A permitted cannabis testing facility business, its owners and its employees may not hold an interest in any other cannabis business except another testing business.

7. Supplemental Standards for Commercial Cannabis Businesses Producing Edible Cannabis Products.
a. The manufacturer and seller of edible cannabis products must ensure that all cannabis products and edible cannabis products it manufactures and/or sells complies with the any applicable provisions of all State and local laws, including regulations of the Contra Costa County Environmental Health Officer regarding the testing, preparation, distribution, labeling and sale of food.
b. Preparation of Edibles.
i. Individuals involved in the production or distribution of edible cannabis products must thoroughly wash their hands before commencing production and before handling the finished
product.
ii. Gloves must be worn when packaging edible products
containing cannabis.
iii. In order to reduce the likelihood of foodborne disease transmission, individuals who are suffering from symptoms associated with acute gastrointestinal illness or are known to be infected with a communicable disease that is transmissible through foodstuffs are prohibited from preparing edible products containing cannabis until they are free of that illness or disease, or are incapable of transmitting the illness or disease through foodstuffs. Individuals who have sores or 725

31 cuts on their hands must use gloves when preparing and handling edible products containing cannabis.
iv. Edibles that are sold at a retail facility may only be prepared by a locally-permitted, and State-licensed manufacturing facility. v. Any and all persons who produce edible cannabis products must be a State-certified food handler. The valid certificate number of such persons must be on record at each
manufacturing facility where the edible product is distributed, and a copy of the certificate kept either on-site, or made available during inspections if kept off-site.
vi. Hand-washing facilities shall be adequate and convenient and be furnished with running water at a suitable temperature. Hand- washing facilities shall be located in the facility in edible cannabis product preparation areas and where good sanitary practices require employees to wash and/or sanitize their hands and provide effective hand -cleaning and sanitizing preparations and sanitary towel service or suitable drying devices.
c. Packaging of Edibles.
i. Edible cannabis products shall comply with State packaging requirements contained in California Code of Regulations Title 17, Division 1, as it may be amended.
d. Labeling.
i. Edible cannabis products shall comply with State labeling requirements contained in California Code of Regulations Title 17, Division 1, as it may be amended.

8. Prohibited Activity. On-site consumption of cannabis or cannabis products is specifically prohibited on all commercial cannabis premises at all times.

L. Fees and Taxes . All commercial cannabis businesses shall pay applicable fees and taxes, which may include one or more of the following:

1. Application Fees. The applicant shall pay all fees required by the master fee schedule to cover the cost s of processing commercial cannabis business permits, including but not limited to use, design review, building, fire, and CBP permits.

2. Business License Fee. The business owner shall at all times maintain a current and valid business license and pay all business taxes required by the City of Richmond Municipal Code , including but not limited to those due under Richmond Municipal Code Section 7.04.139.
726

32 3. Commercial Cannabis Regulatory Fee. The business owner shall pay an annual regulatory fee to cover the costs of anticipated enforcement and inspections relating to the cannabis operation. The amount of the fee shall be set by Resolution of the City Council and be supported by the estimated additional costs of enforcement and monitoring associated with the cannabis operation.

The regulatory fee shall be due upon issuance of the CBP. The Regulatory Fee may be amended from time to time based upon actual costs.

4. All required taxes including sales and use taxes, business, payroll etc.

5. Additional cannabis -specific taxes approved by the voters of the City of Richmond.

M. Liability and Indemnification.

2. To the maximum extent permitted by law, the permittee(s) under this Section shall defend (with counsel acceptable to the City), indemnify and hold harmless the City, the City Council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called "City") from any liability, damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings, or judgment (including legal costs, attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) (collectively called "action") against the City to attack, set aside, void or annu al, any cannabis-related approvals and actions and strictly comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse th e City for its reasonable legal costs and attorneys' fees.

N. Violations and Enforcement.

1. Any violation of this Section shall be subject to all Enforcement Provisions set forth in Article 15.04.815;

2. Any person violating any provision of this Section, including engaging in a commercial cannabis business without a CUP and CBP or knowingly or intentionally misrepresenting any mate rial fact in procuring a CUP and CBP, shall be deemed guilty of a misdemeanor punishable by a fine of not more than 727

33 $1,000.00 for each day or portion thereof of the violation or by imprisonment for not more than 12 months, or by both such fine and imprisonment;

3. Any violation of this Section shall be subject to injunctive relief, revocation of the certificate of occupancy for the property, disgorgement and payment to the City of any and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any o ther relief or remedy available at law or equity; and

4. Any violation of any condition of a CUP or CBP for a commercial cannabis business, including failure to remit any fees required to maintain the permits and/or failure to remit the quarterly gross receipt taxes, shall be grounds for permit suspension or revocation.

728
`
Galvanized Water Service
Lines Requiring Replacement
Community Outreach
December 2023
729
© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
AGENDA
 What is a service line?
 East Bay History
 New EPA Requirements
 Who’s affected?
 Galvanized Service Lines
 How does lead testing
work?
 Next Steps
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
What is a Service Line?
3 The small pipe that
carries water from the
large pipe under the
street into a home,
business, or facility.
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
Who Owns the Service Line?
• The pipe on the street
side of the meter
belongs to EBMUD
• The pipe that goes to
the home belongs to
the property owner.
4 732
© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT 5
History
 During WWII, thousands of
homes were built for defense
workers moving to the East Bay
to support the shipyards
 Between 1942 and 1945
EBMUD installed lead service
lines when copper and steel
were unavailable
 All of these lead service lines
have been removed
733
© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
Former Lead Service Line Locations
Highest concentrations in
Oakland, Richmond, San
Leandro, San Lorenzo, and
San Pablo.
6 734
© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
Former Lead Service Line Locations
• Many services were
branched (i.e., one line
serves two or more
meters)
• Nearly 10,000 customer-
side services were
formerly connected to
lead service lines
7 City Number of District-side
Service Lines (Former LSLs)
Number of Customer-
side Service Lines
Oakland 1765 2617
Richmond 1844 2417
San Leandro 846 1350
San Lorenzo 567 1031
San Pablo 852 1017
Berkeley 383 483
El Cerrito 163 211
Alameda 121 169
Hayward 91 128
Castro Valley 94 114
Albany 80 100
Rodeo 55 86
Lafayette 29 29
Emeryville 22 24
Walnut Creek 16 16
El Sobrante 13 14
Piedmont 11 11
Orinda 5 5
Pleasant Hill 3 4
Kensington 3 3
Total 6963 9829
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
• Lead Service Line removal
started as soon as copper
and steel became available
again in 1945
• More than half were removed
by 1970, 97% were removed
by 2000
8 0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
Active EBMUD lead service laterals
Year
LSLs In Service
When were the Lead Lines Removed?
• Recent intensive record
searches and field
verifications indicate none
left
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
New Federal Regulations
• Water systems must create a
service line inventory, deadline is
October 2024
• Customer-side inventory in addition
to District-side
• New category of pipe: Galvanized
Requiring Replacement (GRR)
– Galvanized line that is or was
downstream of a lead service line
9 EPA infographic for new sampling protocols
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
How Does this Impact EBMUD?
• Despite having removed all
known lead service lines,
EBMUD has requirements under
the new rules
• “GRRs” must be identified, and
customers served by these lines
must be notified
• Mandatory language about the
health risks of lead must be
included in the notification letter
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
What is a Galvanized Service Line?
11 • Galvanized pipes are iron or steel that have
a protective zinc coating
• Once the zinc is gone, the iron will corrode
• Not commonly used today, they were
common before the 1960s
• In some circumstances, lead-bearing scale
can form inside galvanized pipes connected
to lead pipes; the lead from this scale can
be release into the water even after the lead
pipe is removed
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT 12
• Field confirmation of materials
• Contractor to visit all 10,000
homes and businesses
• Visual inspection at meter box
and riser
• >90% of inspections do not
involve interaction with
customer
• Informational pamphlet,
translations, and FAQs
• Project duration expected to be
1 – 2 years
Inspections of Former Lead Locations
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
Customers Served by GRRs must be notified
• Initial notification within 30 days of completion of
inventory, November 2024
• We estimate about ½ are galvanized
• Notifications will be sent to about 5,000 customers
• Annual notification to customer until GRR is
replaced
• Event-based notification when line is disturbed
(e.g., meter replacement, main shutoff, etc.)
• GRR laterals are homeowner’s responsibility
• EBMUD data indicates that lead levels are very
low/as low as other laterals
13 Exposure to lead in drinking water can
cause serious health effects in all age
groups. Infants and children can have
decreases in IQ and attention span. Lead
exposure can lead to new learning and
behavior problems or exacerbate existing
learning and behavior problems. The
children of women who are exposed to
lead before or during pregnancy can
have increased risk of these adverse
health effects. Adults can have increased
risks of heart disease, high blood
pressure, kidney, or nervous system
problems.

EPA mandatory language about lead
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
• EBMUD has tested
hundreds of customer
taps samples
• High-risk homes
• Cross section of
random customers
• Focused study of
existing galvanized
lines with lead
connectors
• GRRs
• Results are good, no
problems indicated
• Occasional high results
linked to faucets and
debris in aerators
14 What is the Concern? Is this Dangerous?
Action Level = 15 ppb
Trigger Level = 10 ppb
Detection Limit for Reporting = 5 ppb
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT
Actions Customers Can Take
15 • Call EBMUD for a free lead test
• Clean or replace aerators (screens) on faucets
• Flush stagnant lines before drinking
• Wash dishes, do laundry, water plants or use water in other ways
• Store a pitcher of water in refrigerator for drinking • Consider a filter for drinking water if lead is high
• Lead is not a problem for bathing, washing, and or other uses
• Boiling does not remove lead
• Replace old faucets
• Replace old galvanized iron pipes
Amazon aerator replacement kit
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© 2023 EAST BAY MUNICIPAL UTILITY DISTRICT 16
Summary
• Outreach related to
customer-side galvanized
pipes
• Mandatory language with
health impacts of lead can
be alarming
• Partner with cities, counties,
local groups to help
customers understand risk
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© 2022 EAST BAY MUD MUNICIPAL UTILITY DISTRICT. CONFIDENTIAL. DO NOT DISTRIBUTE.

QUESTIONS?
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Community Development

DATE: December 5, 2023
TO: Mayor Martinez and Members of the City Council
FROM:

Lina Velasco, Director of Community Development
Hector Rojas, Planning Manager

Subject:

Hilltop Horizon Specific Plan
FINANCIAL IMPACT: There is no fiscal impact related to this item.

PREVIOUS COUNCIL
ACTION:

None

STATEMENT OF THE
ISSUE:

The City kicked-off the Hilltop Horizon Specific Plan in 2021 and since then, the Specific Plan team has
engaged the community and other stakeholders to
identify a wide range of hopes and aspirations for this key opportunity area. The purpose of this study session is to familiarize the City Council with the specific plan work; summarize the community and stakeholder input
received thus far; and to receive the City Council’s
feedback on the uses in the initial concept alternatives. It is important for the City Council to keep in mind that the Specific Plan team is not requesting the City Council
select a concept alternative at this time. The desired
outcome for this study session is to receive feedback that would help the Specific Plan team develop a preferred
land use vision, which would be brought back for
consideration by Spring 2024.

RECOMMENDED ACTION:

RECEIVE a presentation; and PROVIDE comments on
the uses in the initial concept alternatives developed for the Hilltop Horizon Specific Plan (PLN23-344) –
Community Development Department (Lina Velasco 510-
620-6841/Hector Rojas 510-621-1220).

AGENDA
REPORT
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BACKGROUND:

Specific Plan Purpose

The Hilltop Horizon Specific Plan (HHSP) area covers approximately 143 acres within the larger Hilltop Priority Development Area (PDA). Priority Development Areas are places near public transit planned for new homes, jobs, and community amenities. The Hilltop PDA was nominated by the City Council and officially designated by the Association of Bay Area Governments in 2020. The HHSP area consists of the former Hilltop Mall and properties immediately surrounding it to the north, west, and south, and by a larger contiguous area to the east and south (see Attachment 1, Map of Hilltop Horizon Specific Plan Area). The City’s vision for Hilltop, as stated in the Richmond General Plan 2030, is for a highly visible and accessible regional district, blended with a mix of vibrant uses that would enhance the area’s competitive edge in the region. The purpose of the HHSP is to support the General Plan vision by promoting the transformation of the plan area from a suburban, low-intensity auto-oriented retail center to a higher intensity, mixed-use destination. The HHSP will contain planning policies, zoning regulations, and urban design standards to help guide this transformation in the near and longer terms.

Funding for the Specific Plan

The HHSP is funded through a $500,000 Local Early Action Planning (LEAP) Grant from the State Department of Housing and Community Development (HCD); a $750,000 Priority Development Area (PDA) Planning Grant from the Metropolitan Transportation Commission (MTC) and Association of Bay Area Governments (ABAG); and $200,000 from the City’s comprehensive planning fees, which are collected through citywide planning and building permits applications.

Specific Plan Team

The City has a multidisciplinary team of policy and environmental planners, traffic consultants, designers, engineers, and economists to support preparation of the HHSP.

The lead consultant is Environmental Science Associates (ESA). Subconsultants consist of BAE Urban Economics for economic and fiscal analyses; Fehr & Peers for transportation; SITELAB urban studio for design; NCE for engineering; CHS Consulting Group for additional transportation/parking analysis support; and A3GEO for geotechnical.

Supporting Documents

The Specific Plan team has prepared a series of memorandums, reports, and studies to help inform the specific plan development process. These documents are available for review on the HHSP website at hilltophorizon.com under the “Documents and Resources” section. The Market Study prepared by BAE Urban Economics presents 747

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several key findings that are particularly relevant as the City Council considers the initial concept alternatives for the plan area.

Demographic and Economic Findings

 Richmond has a strong population base that can provide potential support for new retail, entertainment, and recreation opportunities in the plan area.

 The City has a large base of consumers living in family households and households with children. These households may provide support for new specialty retail, eating and drinking establishments, and other family-oriented entertainment and recreation establishments.

 The City’s younger population base could help to support new forms of specialty and experiential retail, or the places consumers seek out to spend their discretionary time and discretionary dollars. Specialty and experiential retail offer immersive shopping experiences that help foster a unique “sense of place.” A new and distinctive family-friendly retail node in the plan area would likely be very attractive to Richmond residents.

 The City’s rich racial and ethnic diversity, with a high proportion of Latinx residents, supports specialty food retail, including ethnic markets and eating and drinking establishments.

 Low household incomes among Richmond residents may present a challenge for attracting regional-serving retail, entertainment, and recreation uses to the plan area. Regional-serving uses may gravitate toward higher-income areas elsewhere in Contra Costa or Alameda County.

 Richmond does not currently serve as a node for office-based employment, which suggests potential challenges for office development in the plan area.

Residential Market Findings

 Competitive market-rate rents and low rental vacancies indicate potential demand for multifamily rental development in the plan area.

 Significant recent growth in residential sale prices in Richmond indicates strong demand for for-sale housing in Richmond, including single-family homes, condominiums, and townhouses.

 Although Richmond has a relatively strong market for condominiums and townhomes, demand for these product types is focused in waterfront areas with access to amenities, in areas that are perceived as relatively safe communities.

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 There is strong demand for affordable housing throughout Richmond and the region, including in the plan area.

 Market-rate residential development in the plan area is likely to target the top end of the market for each product type to achieve rents and sale prices that are high enough to cover the cost of new construction. As a result, new market-rate homes would likely be priced at levels that are not affordable to moderate-income and lower-income households. Strategies to target the production of housing for lower-income and moderate-income households will be necessary to accommodate the full spectrum of housing needs across income ranges in the plan area.

 Providing a range of housing types in the plan area at a mix of price points, including multifamily rental housing, condominiums, and townhomes, could address demand from various segments of the community.

 Attracting market-rate residential development to the plan area is likely to require implementation of placemaking strategies to complement residential uses, create a safe community feel, and provide dining and entertainment for new residents.

These strategies will be particularly important for for-sale housing types to achieve the sale prices necessary to attract new development.

 The plan area offers a large site with the potential for a mix of uses that can create a sense of place with a mix of complementary uses that will support demand for new residential development.

Retail Market Findings

 Population growth in general will generate new retail spending power that can potentially be captured in the plan area. Attracting additional residents to the plan area may be critical for attracting new retailers to the site, and therefore early phases of implementation of the Specific Plan should focus on residential development rather than new retail.

 Noting the lack of nearby full-scale grocery stores, some residential real estate brokers suggested that there may be demand for a grocery store in the plan area, which could be further supported by new residential growth.

 E-commerce is disrupting the retail sector, resulting in the need for less physical space and more efficient use of existing space. Given this environment, only the most compelling sites will be attractive to retail developers or retail tenants. As such, it is critically important to refine how and where to build new retail space within the plan area.

 Overall, retail uses in the plan area will have a greater chance of success if developable sites offer good visibility, clear and unobstructed signage, and are 749

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easily directly accessible from a high-traffic volume arterial or collector street.

Sites that are ‘mid-block’ or located on minor streets are not as attractive to retail developers or retail tenants. Retail developers of neighborhood and community centers prefer sites that are ‘100 percent’ corners on the ‘going home side’ of the street.

Office Market Findings

 Richmond is not an established office market and office rents are currently too low to support new speculative office development. However, small-scale office uses within a larger mixed-use project may be feasible by targeting tenants serving local residents and businesses in the future.

 Office tenants prefer physical settings that offer an ‘urban’ feel, even if situated in a suburban location. The completion of a walkable and amenity-rich mixed-use development project in the plan area could greatly improve the area’s attractiveness as a potential office location.

Industrial/Flex Market Findings

 Richmond is strategically located to capture industrial demand spurred by the Port of Richmond, the Port of Oakland, and the growing demand for last-mile warehouse and distribution space regionwide.

 Vacancy rates for industrial and flex space are historically low, indicating that the market would be receptive to new industrial or flex product in the plan area.

 Although market trends suggest relatively strong demand for industrial space in Richmond, some industrial uses could potentially be incompatible with existing and future residential uses in the plan area. Industrial tenants typically seek locations separated from residential uses to avoid conflicts arising from truck traffic and emissions, noise, and vibrations. Additionally, conflicts between residential uses and industrial uses can hamper the operation of industrial businesses, making industrial operations less viable over time.

 The plan area may be an appropriate location for new smaller-scale industrial/flex, Research and Development (R&D), and PDR uses. Businesses in these industries can provide high-quality job opportunities for City residents.

Hotel Market Findings

 There are currently two planned hotels in the plan area. New hotels in Richmond may be able to secure a competitive position in the local market relative to the existing lodging inventory by offering a more modern aesthetic and amenities.

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 Richmond currently serves primarily as an economy hotel market with limited business travel. Ensuring that the plan area includes a mix of uses and amenities that would support a higher-end hotel property could be critical to attracting a different category of hotel to the plan area, if desired.

 Hotels in Richmond may seek to increase leisure travel stays in part by enhancing connections with local and regional attractions and experiences.

Entertainment Uses Findings

 Due to low population densities and low incomes surrounding the plan area, the plan area is not currently an attractive location for new region-serving entertainment or retail. However, the development of a new high-quality mixed- used project with a significant residential component should drastically increase the population density in the plan area and may help to build additional support for retail and entertainment uses in the future. Therefore, attracting these types of uses to the plan area might rely on attracting a significant amount of residential development to the plan area during earlier phases of implementation.

 There is unmet demand for drinking places that serve alcoholic beverages in Richmond, such as a craft brewery. Given this significant and unmet existing demand, a brewpub with a full restaurant would be an ideal type of establishment within the plan area due to its focus on on-site sales of both food and beverages.

Community & Stakeholder Engagement

The specific plan development process was kicked-off in 2021 with an initial phase of public outreach to receive input from the area’s neighborhood councils; private property and public agency stakeholders; and the community at large. The initial phase of outreach included a series of stakeholder interviews, an online community survey, an advisory committee meeting, and a community workshop.

Stakeholder Interviews

The specific plan team facilitated a series of virtual interviews in Summer 2022 to engage key stakeholders in one-on-one or small-group sessions to gain feedback regarding the Hilltop Horizon Specific Plan. The stakeholders interviewed included the Richmond Neighborhood Coordinating Council, Hilltop District Neighborhood Council, Hilltop Green Homeowner’s Association, Fairmede-Hilltop Neighborhood Council, transit agencies, Contra Costa Health Services, utility companies, West Contra Costa Unified School District, area charter schools, Prologis, the West Contra Costa County Council of Business and Industry, City Council members (2), Planning Commissioners (3), and Design Review Board members (3). Key takeaways from the interviews are summarized below:

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 Major Challenges: Stakeholders across the different groups generally agreed on major challenges and concerns, including housing need, safety and security (including police and crime), lack of healthy food options, transit connections, Measure U, economically feasible uses, and adverse effects as a result of industrial uses.

 Housing: Stakeholders identified housing as a major need, especially low-income and affordable housing. Stakeholders expressed the need and desire for multiple-story, high-rise, and high-density housing developments that provide views of the Bay and help to meet housing needs. One stakeholder said, “the more of it that you can put in, the better.”

 Foods and Shops: Grocery stores, markets, and restaurants are lacking in the community and stakeholders would like to see diverse, healthy food options.

 Community Identity, Culture, and Gathering Spaces: Stakeholders expressed the importance of maintaining a community gathering space/center. The mall site has previously served as a gathering area and residents are concerned of this being taken away without being replaced or improved. Stakeholders would like to see gathering spaces with community events, live music, diversity in foods, shops, and businesses, sports amenities, recreation programs, and more parks and trees. Stakeholders want residents, children, and visitors to be prioritized, and for the plan area to, “bring people out to enjoy the city.”

 Community Safety: Safety was identified as a major concern across all stakeholder groups. Stakeholders indicated high crime rates, concern for active commuters and children, speed of vehicles within the plan area, vandalism, car safety, theft, and homelessness. Stakeholders would like to see intentional designs that discourage crime and improve safety, including lighting, cameras, open spaces, increased patrolling, and traffic calming measures.

 Roadways and Connectivity: Stakeholders expressed the need for an improved street system that is safe and provides connections to transit, bike and pedestrian trails. Stakeholders generally described the current circular road as a “nuisance”. Stakeholders would like to see enforcement of speed limits, street redesign for walkability and connectivity, traffic-calming measures, less surface parking, complete sidewalks, and connections to BART and other transit systems.

 Separated and Green Industrial: The potential negative impacts typically associated with industrial uses are generally not desired; however, stakeholders acknowledged their benefits to the economy and employment. Stakeholders expressed that industrial uses should be separated and buffered from residential and social gathering areas, and limit noise, smells, and pollution. Stakeholders are concerned about warehouses taking over the space and for industrial uses being prioritized, or at the forefront of development. Stakeholders do not want to 752

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see or hear large trucks, “honking horns”, heavy truck traffic near residential and schools, or smell exhaust fumes/chemicals. Stakeholders commented that industrial uses can serve as the “economic engine” and subsidize other uses that the community really wants/needs.

 Economic and Workforce Opportunities: Stakeholders would like to see new job opportunities for the local community, from new commercial and industrial uses.

Stakeholders would like Richmond to be a more active participant in the innovation community, in which the Bay Area is a world leader in.

 Build Up: Stakeholders expressed the need for building up and making use of vertical space for housing, businesses, and parking that provide views of Richmond’s unique and scenic views. Stakeholders would like to see vertical buildings and multiple-story housing developments, with innovative architecture and designs.

Community Survey

A community survey was conducted online through SurveyMonkey from February 24, 2023 to March 15, 2023. An in-person opportunity to complete the survey was also provided on March 11, 2023, at the Richmond Walmart in Hilltop. The survey contained a total of 27 questions and received 472 responses. Key takeaways from the survey are highlighted below:

 Top priorities for the planning area include attracting new businesses (47.03%); creating entertainment opportunities (38.98%); creating more housing choices (36.65%); promoting new land uses that stimulate the local economy (33.47%); promoting safety (30.72%); promoting employment opportunities (28.39%); and enhancing services and amenities (27.12%).

 Types of housing most needed in the planning area include affordable housing (51.83%); multi-family residential (43.58%); for-sale housing (42.89%), single- family attached homes (38.3%); for rent housing (42.89%), and single-family detached homes (25.46%).

 Types of retail establishments most desired in the planning area include restaurants and cafes (85.78%); grocery stores (70.41%); independently-owned small businesses (52.06%); big box stores (50%); and flexible retail spaces (16.74%).

 Respondents would like to see change happen in the plan area within the next five years (89.91%).

 A considerable number of respondents think industrial uses should not be permitted in the planning area (44.28%). Respondents open to light industrial uses in the plan area indicated the following types would be most acceptable:
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research & development (42.82%); data center (35.77%); showrooms (23.11%); flex space (19.22%); light manufacturing (17.76%); and distribution warehouse (14.84%).

 The biggest concerns related to industrial uses in the planning area are air quality impacts (72.02%); noise impacts (63.50%); traffic impacts (62.04%); odors (57.66%); and view impacts (38.44%).

 Respondents indicated that improvements for the following mobility options should be prioritized in the plan area: walking (70.56%); transit – bus (57.66%); biking (55.47%); personal vehicle (42.58%).

 Types of community facilities that should be prioritized in the planning area include: active recreational uses (71.78%); passive open spaces (70.80%); community/senior centers (45.01%); libraries (35.28%); health clinics (33.09%); police/fire services (30.66%); cultural facilities (30.41%); and schools (18.0%).

Advisory Committee Meeting #1

The first advisory committee meeting was hosted by the specific plan team on August 24, 2022. The advisory committee was formed to serve as a sounding board to provide guidance, feedback, and recommendations throughout the specific plan development process. Advisory committee participants for this meeting included AC Transit, WestCAT, West Contra Costa Transportation Advisory Committee (WCCTAC), West County Wastewater, Campus LLC, Contra Costa Health Services, Hilltop Green Homeowner’s Association, Hilltop District Neighborhood Council, Parchester Village Neighborhood Council, Prologis, and West Contra Costa County Council of Business and Industries. As part of the meeting, the advisory committee shared that the following themes should be prioritized as part of the specific planning process:

 Community, Culture, and Gathering Spaces (69%): New development should allow spaces to celebrate culture, diversity, and community. Hilltop Mall has one of the best views; try to combine an outdoor development to make use of the view. Provide public spaces to allow community members to connect. Create a center, a focal point to steer away from the uniformness that comes with suburban development.

 Housing (54%): Provide senior housing and supporting resources. Require or incentivize construction of affordable housing rather than payment of in-lieu fees.

Encourage building upward to create higher density housing. Transit needs to be coordinated together with housing development like it has on Treasure Island.

Housing should be focused around the mall so that the mall site can be prioritized for retail, gathering spaces, etc.

 Connectivity (54%): Transit passes should be made available for future residents.

With a few improvements, Hilltop can become a great biking environment. The 754

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schools located off Hilltop Mall Road need a better plan for pick-up/drop-off.

Consider having roads/lanes that are exclusively for transit/buses. Increase density in the area to support use of the existing transit center. Consider establishing a transportation management association that could help pay for shuttles and other parking demand management strategies. Consider redesigning existing roadways to provide better connectivity and mobility.

 Safety (54%): Locate a police station or substation in the nearby area. Utilize crime-prevention through environmental design principles to promote safety and prevent crime. People need to feel safe so that they will want to shop, play, work, and live in the plan area. The City should address complaints about dangerous roadway conditions in the area as part of the plan. Fire safety should be addressed as population growth occurs in the plan area.

Community Workshop #1
The first community workshop was hosted by the specific plan team on September 27, 2022. The purpose of this virtual workshop was to give community members at large the opportunity to share input on the specific planning process. The workshop was well attended with a total of 112 participants. Following is a summary of major themes expressed during the workshop breakout rooms:

 Mixed-use outdoor spaces; outdoor recreation and sports facilities; gardens, green roofs, and green buffers are lacking in the plan area and should be enhanced as part of the specific plan.

 The specific plan should address public safety, enhance traffic control (i.e., signage), and include safety measures for parking.

 Places should be provided in the planning area for people to gather and enjoy community events with live entertainment.

 Warehouse and industrial uses are not generally favored in the planning area due to potential pollution and traffic impacts. Other unfavorable uses include big chain stores, smoke shops, and cannabis dispensaries.

 The types of development participants thought should be prioritized in the early implementation of the specific plan include green spaces, trails, connections to Lake Park, grocery stores, local and specialty stores, outdoor restaurants, a Costco, educator housing, affordable housing, senior housing, and public safety.

 There was cohesive agreement that the plan area needs to be made whole and better connected and that the specific plan team should work towards consensus among the different stakeholders.

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DISCUSSION:

Early City-Developed Concept Alternatives

The Specific Plan team has developed initial concept alternatives for the plan area based on the input provided through the initial phase of community engagement (see Attachment 2, City-Developed Concept Alternatives). These City-developed concept alternatives are intended to address community goals, take advantage of Hilltop’s place- specific qualities, and provide flexibility for near- and long-term implementation. The community goals addressed by the city-developed concept alternatives are:

 Growing the plan area into a complete neighborhood and destination with a mix of land uses and entertainment opportunities;

 Attracting new neighbors, businesses, and visitors through expanded housing choices and employment opportunities; and

 Creating spaces to belong, connect, and share while promoting safety, enhancing mobility for all users, and emphasizing community sustainability, resilience, and equity.

The City-Developed Concept alternatives contemplate the following:

 The extension of Robert Miller Drive east through the mall site to connect to Klose Way and the extension of Shane Drive north through the mall site to connect with Hillview Drive;

 A new north-south open space corridor or trail alignment between Hilltop Lake Park to the water tank site at the intersection of Hilltop and Blume that could offer views and recreational opportunities;

 A residential neighborhood and park in the northwest quadrant of the mall site and higher-density residential district in the southwest quadrant;

 A mixed-use residential neighborhood in the southeast quadrant of the mall site with large-format retail anchors near the corner of Klose Way and Hilltop Mall Road;

 In City-Developed Concept Alternative A, the northeast quadrant of the mall site could accommodate employment/industrial uses;

 In City-Developed Concept Alternative B, the northeast quadrant of the mall site could accommodate mixed-use office instead of employment/industrial uses;

 Allowing flexibility for the block bound by Robert Miller Drive, Hilltop Drive, Shane Drive, and Hilltop Mall Road to transition to residential uses; 756

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 Acknowledging the existing Aspire charter schools located at the southeast corner of Shane Drive and Hilltop Mall Road and the southeast corner of Hilltop Mall Road and Klose Way;

 Allowing flexibility for other properties located along Hilltop Mall Road between Shane Drive and Klose Way to transition to entertainment and residential uses;

 Acknowledging the existing Courtyard and Extended Stay hotels along Garrity Way east of Blume Drive and allowing flexibility for other service-related uses to locate in this area; and

 Acknowledging the existing multifamily residential use (Tides Apartments) at the end of Garrity Way and allowing for higher-density residential uses on the vacant properties immediately west of the Tides.

Mall Landowner-Developed Concept Alternatives

The mall site accounts for approximately 55 percent of the plan area (78 of 143 acres).

In 2020, Prologis purchased the mall site with the intent to redevelop the property. At the first community workshop, the community desired to know what the new landowner wanted to do with the property. Initial plans developed by Prologis for the mall site showed various arrangements of predominantly employment/industrial uses as well as some retail and housing. Most recently, Prologis partnered with Signature Development Group to prepare more refined concept alternatives for the mall site that better aligned with the feedback received during the specific planning process and their own community outreach efforts (see Attachment 3, Mall Landowner-Developed Concept Plans). It is important to note that the mall landowner-developed concept alternatives were not prepared by the Specific Plan team – they were prepared and funded solely by the Prologis/Signature team.

The mall landowner-developed concept alternatives contemplate the following:

 Vacating the northern segment of Hilltop Mall Road between Hillview Drive and Klose Way to provide a bike and pedestrian landscaped corridor;

 The extension of Robert Miller Drive east through the mall site to connect to Klose Way and provide bike and pedestrian improvements along this new corridor;

 The extension of Hillview Drive south into the mall site to connect to the Robert Miller Drive extension and provide bike and pedestrian improvements along this new corridor;

 Community gateway elements at the Hillview Drive/Hilltop Mall Road, Robert Miller Drive/Hilltop Mall Road, and Klose Way/Hilltop Mall Road intersections;

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 One-acre parks at the Hillview Drive/Hilltop Mall Road and Klose Way/Hilltop Mall Road intersections;

 Potential for larger floor plate retail or smaller-scale, experiential retail on 21.9 acres immediately south and east of the existing Walmart store (which has 25- year lease that constrains its potential relocation);

 In Mall Landowner-Developed Concept Alternative A, a 10 to 14-acre portion of the mall site located at the southeast corner Hillview Drive and Hilltop Mall Road could allow for industrial/employment uses with the remaining mall site reserved for a mix of low to medium density residential uses (approximately 36 to 40 acres); and

 In Mall Landowner-Developed Concept Alternative B, no industrial/employment uses and the majority of the mall site would accommodate a mix of low to medium density residential uses (approximately 50 acres).

Feedback on Concept Alternatives

The specific plan team presented the concept alternatives at a second advisory committee meeting on October 26, 2023; a second community workshop on November 1, 2023; and a Planning Commission study session on November 16, 2023.

The feedback and discussion from Advisory Committee Meeting #2 and Community Workshop #2 are summarized in Attachments 3 and 4 of this report. The Planning Commission’s feedback can be summarized as follows:

 General: There was support to enhance the existing community, with a focus on creating a family-friendly environment. The specific plan should ensure improvements are made to educational institutions, through investments and contributions to schools. A need for more housing was recognized, with an emphasis on provisions for senior housing and amenities. Integrate high quality transit into the plan and provide a multi-modal system that allows users to move safely and conveniently to and through the community. The specific plan should integrate actionable strategies from the City's Climate Action Plan, to enhance the resiliency of the area. Boost outreach efforts to gain input from participants that represent a range in socio-economic backgrounds.

 Development Timeline: While there is interest to see built projects occur within the near term (0 - 5 years), a development timeline of 6 to 10 years (medium term) seems most realistic in order to create a holistic plan that accomplishes all of the plan goals. As market conditions will evolve, a flexible plan that can adapt to market changes is most desirable.

 Employment: Employment opportunities should be created in corresponding measure to the housing being developed. The specific plan should promote jobs that allow people to thrive. In the spirit of enhancing the existing community, jobs 758

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created should elevate the opportunities for local as well as new residents, provide healthy salaries for workers, and encourage foot traffic. Incubator, or innovative co-working spaces, are appealing. Input was received both in favor and not in favor of development of logistics facilities and distribution centers.

 Retail: Retail development should be people-oriented and accessible to by transit, cars, bicycles and pedestrians. An active open space concept provides for a pedestrian connection between the retail/commercial areas and the rest of the community. Retail needs to integrate with the existing Walmart, and should have high visibility from the freeway and main roads. Retail should promote community interaction and cater to the needs of existing and future users.

 Housing: Housing should support and provide options for young families, have a range of affordability levels, and be implemented in a range of densities. This would allow for a critical mass of residents, which is necessary to support and induce new development. Mid-density housing such as townhomes and multifamily housing is supported over single-family detached housing.

Consideration should be given to mixed-use developments that interact with the street face, and urban design strategies that activate spaces.

CONCLUSION:

At the December 5th study session, the Specific Plan team will provide the City Council with an overview of the progression of the concept alternatives, summarize all feedback received on the concept alternatives (including that of the Planning Commission), and solicit additional feedback from the City Council. In addition to feedback on the concept alternatives, the specific plan team will request input on the following:

 How quickly should change happen in the plan area?

 Which employment use types would be the least desirable in the plan area?

 What style of new retail development is most desirable for the plan area?

 Is there support for a reduction to the density minimums at the mall site to spur residential development and other types of development in the plan area?

 Is there support for an increase to the density maximums for the remaining properties in the plan area to spur residential development and other types of development in the plan area?

NEXT STEPS:

The collective Advisory Committee, community/stakeholder, Planning Commission, and City Council feedback will be used by the Specific Plan team to start developing a preferred land use vision for the plan area. Once the preferred land use vision is 759

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prepared, it will be brought back to the Planning Commission and City Council for confirmation. With the finalization of the preferred land use vision, the Specific Plan team will begin drafting the specific plan document and conduct the appropriate level of environmental review under the California Environmental Quality Act (CEQA). Adoption hearings for the specific plan are currently anticipated to occur by the end of next year; however, this target may change depending on when the preferred land use vision is confirmed.

DOCUMENTS ATTACHED:

Attachment 1 – Map of Hilltop Horizon Specific Plan Area Attachment 2 – City-Developed Concept Alternatives
Attachment 3 – Mall Landowner-Developed Concept Alternatives Attachment 4 – Advisory Committee Meeting #2 Summary
Attachment 5 – Community Workshop #2 Summary
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3.0 Existing Conditions

Richmond Hilltop Specific Plan 10 ESA / D201900269.01
Existing Conditions Memorandum July 2022
Preliminary − Subject to Revision

SOURCE: City of Richmond, 2022; ESA, 2022. Hilltop Specific Plan Figure 2
Plan Area Boundary
Attachment 1
Map of Hilltop Horizon Specific
Plan Area
761
Refined City-Developed Concept Alternatives
City of Richmond, CA | 11/1/23 | 27
A B
Hotel / Services
Large-Format Retail Anchors
Employment/Industrial
Open Space
Residential
Mixed-Use Residential
Mixed-Use Office
Schools /
Entertainment
Attachment 2
City-Developed Concept
Alternatives
762
Refined Mall Landowner Concept Alternatives
City of Richmond, CA | 11/1/23 | 28
Source: Signature Development Group, Hart Howerton Source: Signature Development Group, Hart Howerton A B
Potential for larger floor plate retail or smaller-scale, experiential retail Attachment 3
Mall Landowner-Developed
Concept Alternatives
763

HILLTOP

HORIZON

Hilltop Horizon Specific Plan – Advisory Committee Meeting #2

Facilitator: Environmental Science Associates (City of Richmond consultants) Location: Virtual Zoom Meeting
Date: Thursday, 10/26/23, 11:00 am – 12:15 pm
Purpose of the Advisory Committee: The purpose of the Advisory Committee is to act as a sounding board to provide guidance, feedback, and recommendations throughout the planning process.

Meeting Objectives:

1. Provide an overview of the progression of the concept alternatives.

2. Gain feedback on key plan components to develop a preferred land use vision.

Advisory Committee (AC) Participants
Below is a summary of Advisory Committee members who participated in the meeting.

Representatives from other or the same organizations, agencies, and City departments who were not able to participate are not shown.

Name Organization
Carissa Lee AC Transit
Armondo Hodge West County Wastewater
Doug Giffin Campus LLC
Bhavin Khatri Hilltop District Neighborhood Council
Lori Hart Parchester Village Neighborhood Council
Coire Reilly West Contra Costa Transportation Advisory Committee Arto Rinteela Fairmede Hilltop Neighborhood Council / Richmond Neighborhood Coordinating Council / West County Wastewater Leah Greenblat West Contra Costa Transportation Advisory Committee Matt Kelly Contra Costa Transportation Authority
May Vang Aspire Richmond
Attachment 4
Advisory Committee Meeting
#2 Summary
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2 Nannette Beacham City of Richmond, Economic Development Sean Morley Signature Development Group
Kate Eppler Richmond Public Library
Eric Zell Prologis representative
Eric Munson City of Richmond, Fire Department
Robert Armijo City of Richmond, Public Works Department Samidha Thakral Prologis
Libby Tyler City of San Pablo
Tom Quaglia Signature Development Group
Kyle Lam City of Richmond, City Manager’s Office
Michael Ghielmetti Signature Development Group
Ms. Wilson* *Contact and affiliation to be confirmed
Total AC Attendees: 22
Staff/Consultant Participants
Name Organization
City of Richmond Staff
Hector Rojas City of Richmond, Planning Department
Consultants
Beverly Choi Environmental Science Associates
Stephanie Cadena Environmental Science Associates
Ethan Wynacht Environmental Science Associates
Dan Dameron Environmental Science Associates
Steven Johnson Environmental Science Associates
Stephanie Hagar BAE Urban Economics
Woody Hanson SITELAB
Total Staff/Consultant
Participants:
8 765

3 Agenda

1. Project Recap

2. Concept Alternatives

3. Next Steps

4. Questions

Poll Questions and Results
The following are the outputs from the poll questions raised during the meeting. The number of responses received for each poll selection, the poll results in percent format, and any additional feedback that may have been provided through the Zoom Chat function are presented below.

Poll #1a: Tell us who you are Responses
A. I live in Richmond 4
B. I work in Richmond 5
C. I own a business and/or commercial property in Richmond 1 D. My residence or business/commercial property is in the Hilltop area 2 E. I represent a public agency (city, county district, agency) 9 F. I represent a community group/organization 4
G. None of these apply 1
Poll #1b: Have you participated in a City-led Hilltop Horizon Specific Plan meeting/activity (Hilltop Horizon stakeholder interviews, Hilltop Horizon Advisory Committee Meeting #1, Hilltop Horizon Community Workshop #1, Hilltop Horizon community survey)?
Responses
A. Yes 9
B. No 2
C. I don’t know 3
Poll #1c: How quickly do you want to see change in the Hilltop Horizon plan area?
Responses
A. 0-5 years 7
B. 6-10 years 2
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4 C. 11-20 years
D. 20+ years -
E. I do not want to see change in the Hilltop plan area. - 767

5 768

6 Poll #2: Do you generally agree with these planning drivers as priority project goals?
Responses
A. Yes 10
B. No 0
Feedback Provided in the Chat Function:
• Senior resources and housing.
• I'd like to see more emphasis on using transit and alternative transportation modes getting to/from and around the site.

Poll #3: Which employment use would be the least desirable in the Hilltop plan area?
Responses
A. Mixed-use Office 3
B. Healthcare/Life Sciences 0
C. Research + Development 0
D. Advanced Manufacturing 1
E. Data Center 1
F. Warehousing and Storage/Distribution 10
Feedback Provided in the Chat Function:
• This question has been asked many times, it’s no secret that distribution isn’t desired here.

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7 Poll #4: What style of new retail development is most desirable for the Hilltop plan area?
Responses
A. Walkable, Main Street-type retail 10
B. Larger floor plate retail 1
C. Both small and larger floor plate retail 8
D. Neither 0

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8 Poll #5a: Would you support a reduction to these density standards at the mall site in the Hilltop plan area in order to spur residential development and other types of development in the plan area? Responses
A. Yes 10
B. No 5
C. I don’t know 1
Poll #5b: Would you support an increase to this density standard at remaining parcels in the Hilltop plan area in order to spur residential development and other types of development in the plan area? Responses
A. Yes 10
B. No 4
C. I don’t know 1

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9 Discussion
Feedback was solicited from the Advisory Committee on the following topics:
• Employment;
• Retail, and;
• Housing.

This section includes both verbal feedback as well as written feedback submitted in the Zoom Chat by Advisory Committee members. The feedback was collected first as written notes during the meeting. Each point below represents a perspective shared by members of the Committee.

Following the feedback, a summary of the key takeaways is provided for each topic.

Employment
• The community has been asked many times if we would like to see a distribution center on this site and the answer has been no.
• Warehousing and industrial are not a good use of the site. • We should look at the highest and best uses for this site: housing and mixed use. • Warehousing and storage/distribution are lower uses and would result in the underutilization of the site.
• It is a bit insulting to see that warehousing and storage/distribution is still being included as a potential land use. The community has repeatedly expressed that they are opposed to warehousing.
• If development of the site is contingent on the inclusion of a warehousing component, that should be made clear. That way the community can provide input that takes into account a potential balance between desired community uses and warehousing and logistics uses.
• New trips on the highways surrounding the area should come from housing, not a distribution center.
• The area needs to have more retail and parks so that people do not have to leave the community to access these amenities.
• This is an opportunity for West County to create a space that is great to live in. • Consider uses that promote a "15-minute city" concept, focusing on the accessibility of amenities within a short distance.
• Current transit ridership trends show that many people in the Richmond Hilltop area are working from home. The feasibility of office use is questionable considering these trends.
• Recent ridership data shows people take mostly local trips. AC Transit is looking to create local trips for quality-of-life uses such grocery stores and healthcare services. • A library branch would be a favorable use.
• Would like to have a library included.
• The area would benefit from a senior center with park and open space. • We would love to see a Police Station or substation.
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10 • Would rather have Richmond Police Department headquarters being here than a library.

Summary of Feedback Received:

Several participants expressed opposition to having warehousing, storage, logistics, and distribution uses in the plan area. There was strong support for enhancing quality of life and complementary uses that can activate and bring more amenities to the site.

Retail
• Large floor plate retail can be implemented in a creative way that makes the mall site a destination while also incorporating neighborhood retail uses. • The concern with street-type retail is that it will be developed and not leased. • Having a walkable and livable community is most important. • This region lacks exciting retail environments. Emeryville is a good retail example. • Mixing large floor plate retail and main street style retail can help support smaller retailers.
• There is community interest in having a Costco at the site. • Using the site for big box stores would be an undesirable outcome, instead, it would be nice to have a destination that is worth walking to.
• The way that you support retail and small businesses is by providing housing near those uses.
• Would like to see a Lowe’s included.

Summary of Feedback Received:

While some opposed having large floor plate retail in the plan area, there was general acceptance for accommodating a mix of large- and small-scale retail that could meet daily needs and create an active destination for all users - a destination with multi-modal access and supported by a critical mass of new potential residents in the plan area.

Housing Density: Parcels Designated as Commercial Mixed-Use, Activity Center (CM-5) • The mall area should be as dense as possible. Would not like to see the development of new single-family homes.
• Do not want to see high rise residential buildings but do want a mix of housing. • Would like to see the density reduced quite a bit.
• Do not want a lot of high density housing as that may jeopardize the quality of life in the community.
• Want to see a good quality of life for people who live here, with senior centers, grocers, and healthcare.
• If shopping and retail are included, residential could be placed on top of those uses. 773

11 • Support having higher density around dedicated transportation facilities, such as the new transit center being proposed near Hilltop.
• It will take years to get this area fully built out. Such a large redevelopment site should consider a BART extension.
• BART extension studies show this scenario is not a possibility. • 22 dwelling units per acre looks good.

Summary of Feedback Received:

While perspectives related to reduced densities in the CM-5 zone (or generally the mall site) varied among participants, there was general support for a development that would include a mix of housing at various densities. Nearly two-thirds of the Committee members would be open to reducing the density requirement at the mall site.

Housing Density: Parcels Designated as Regional Commercial (CR) • Would like to maintain the quality of life for existing residents. If we do put in amenities, they should be supportive of quality of life such as: healthcare, grocery stores, senior centers and retail. Including these amenities will help maintain quality of life for existing residents while making the area a good place to live for new residents. • AC transit has a long history of serving the site and would like to continue serving the site.
• It is important to ensure that there is access to public transportation when increasing density in an area.
• Denser housing should be located near transit centers. • While a new BART station would be desirable, an extension to the Hilltop plan area is likely not realistic.
• With any large increase in population there should be an increase to police, fire, and public transportation.
• Each of the various density levels presented look doable, just need to mix it up. • Richmond will not support a BART extension from El Cerrito Del Norte, only the Richmond Station.

Summary of Feedback Received:

Committee members expressed their support for higher density development on parcels designated as Regional Commercial, provided that community amenities to maintain the quality of life for current and future residents and users are included, along with access to public transportation.

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HILLTOP

HORIZON

Hilltop Horizon Specific Plan – Community Workshop #2

Location: Virtual Zoom Meeting
Date: Wednesday, 11/01/23, 5:30 pm – 7:00 pm
Meeting Objectives:

1. Provide an overview of the progression of the concept alternatives.

2. Gain feedback on key plan components to develop a preferred land use vision.

Total Participants: 59
Workshop Facilitators
Name Organization
City of Richmond Staff
Hector Rojas Planning Department
Lina Velasco Planning Department
Kristi Ellerbroek Planning Department
Rae Alberts Planning Department
Maria Leticia Oregon Interpreter
Consultants
Beverly Choi Environmental Science Associates
Stephanie Cadena Environmental Science Associates
Ethan Wynacht Environmental Science Associates
Dan Dameron Environmental Science Associates
Steven Johnson Environmental Science Associates
Stephanie Hagar BAE Urban Economics
Woody Hanson SITELAB
Arthur Perez-Marseres SITELAB
Total Staff/Consultant
Participants:
13 Attachment 5
Community Workshop #2
Summary
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2 Solicitation
Postcard flyers for the Workshop event were sent to approximately 577 property owners within a 500-foot radius of the plan area. The Workshop was also advertised on the Hilltop Horizon project website at https://hilltophorizon.com/, under the Events section, and published in the October City Manager Weekly Report on 10/27/23.

Meeting Format
The Community Workshop #2 was conducted over a virtual Zoom meeting with call-in capability and language options available in English and Spanish.

Agenda

1. Project Recap

2. Concept Alternatives

3. Next Steps

4. Questions

Poll Questions and Results
The following are the outputs from the poll questions raised during the Workshop. The number of responses received for each poll selection, the poll results in percent format, and any additional feedback that may have been provided through the Zoom Chat function are presented below.

Poll #1a: Tell us who you are Responses
A. I live in Richmond 7
B. I work in Richmond -
C. I own a business and/or commercial property in Richmond 2 D. My residence or business/commercial property is in the Hilltop area 7 E. I represent a public agency (city, county district, agency) 2 F. I represent a community group/organization 1
G. None of these apply 2
Poll #1b: Have you participated in a City-led Hilltop Horizon Specific Plan meeting/activity (Hilltop Horizon stakeholder interviews, Hilltop Horizon Advisory Committee Meeting #1, Hilltop Horizon Community Workshop #1, Hilltop Horizon community survey)?
Responses
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3 A. Yes 4
B. No 5
C. I don’t know 1
Poll #1c: How quickly do you want to see change in the Hilltop Horizon plan area?
Responses
A. 0-5 years 9
B. 6-10 years -
C. 11-20 years -
D. 20+ years -
E. I do not want to see change in the Hilltop plan area. - 777

4 778

5 Poll #2: Do you generally agree with these planning drivers as priority project goals?
Responses
A. Yes 18
B. No 1
Feedback Provided in the Chat Function:
• A new public library branch
• More retail and restaurant options; green spaces
• More retail
• Community space for farmers market, festivals
• A community center
• Use Point Richmond as a model. It’s lovely down there! • I was envisioning more restaurants.
• I was thinking about more retail shops like a Saks.
• Lot more retail and entertainment needed on the mall site • When I went to New York I saw a lot of retail and a theater. • I would hope to move forward with a plan that doesn’t require rezone, so we can see progress more quickly!

Poll #3: Which employment use would be the least desirable in the Hilltop plan area?
Responses
A. Mixed-use Office 3
B. Healthcare/Life Sciences 2
C. Research + Development 0
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6 D. Advanced Manufacturing 2
E. Data Center 1
F. Warehousing and Storage/Distribution 15
Feedback Provided in the Chat Function:
• Whichever option gets in the way of open green space and community centers is my choice for least preferred

Poll #4: What style of new retail development is most desirable for the Hilltop plan area?
Responses
A. Walkable, Main Street-type retail 9
B. Larger floor plate retail 0
C. Both small and larger floor plate retail 12
D. Neither 0
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7 Poll #5a: Would you support a reduction to these density standards at the mall site in the Hilltop plan area in order to spur residential development and other types of development in the plan area? Responses
A. Yes 11
B. No 7
C. I don’t know 5
Feedback Provided in the Chat Function:
• 22-40 is reasonable. (This comment received one “thumbs up” reaction.) Poll #5b: Would you support an increase to this density standard at remaining parcels in the Hilltop plan area in order to spur residential development and other types of development in the plan area? Responses
A. Yes 11
B. No 8
C. I don’t know 3

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8 782

9 Discussion
Feedback was solicited from Community Workshop participants on the following topics:
• Employment;
• Retail, and;
• Housing.

This section includes both verbal feedback and written feedback submitted in the Zoom chat by Community Workshop participants. The feedback was collected first as written notes during the meeting. Each line represents a perspective shared by Community Workshop participants.

Following the bulleted feedback, a summary of the key takeaways is provided for each topic.

Employment
• The community is not interested in warehouses/storage or distribution. • Warehousing and industrial are not human scale and they don’t bring a lot of human interaction.
• Heading out towards the Amazon warehouse area near the golf course, the landscape appears tidy and well-maintained. However, it lacks walkability, remains uninteresting, and features large parking lots, devoid of shops and restaurants. • Warehousing and storage would not elevate the community as Richmond already has a lot of these types of developments.
• The community has existing warehousing and distribution centers. UPS and Amazon have centers in Point Pinole.
• Other places in the community are better suited for warehousing and distribution centers.
• Having warehousing and distribution could limit the opportunity to have denser housing. • Concerned that due to the mall property owner’s specialization in logistics, the site might predominantly be developed for logistics purposes.
• Opposed to data centers and warehouses, which would bring truck traffic into this residential area. High truck traffic should be kept away from places where families and kids walk.
• Do not want to see industrial.
• A data center, Research & Development facility, advanced manufacturing, and healthcare/life science uses would be okay.
• Having research and development and biotech uses would generate employment and avoid having unleased office buildings. Additionally, employees at these developments would support local businesses.
• Research & Development would bring the wrong kind of traffic and would take away from the community feel of the area.
• Mixed-use development would be a big plus for the community and would bring employment opportunities.
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10 • Want a wide variety of different types of people and businesses at Hilltop and would like to create an aesthetically pleasing area that is aligned with what residents want. • Healthcare services would be a good use for the site as the community needs these types of amenities.
• Healthcare facilities are needed in Hilltop and are more important than data centers and advanced manufacturing.
• A hospital building should be included as it would be an essential and crucial health and safety element for residents of Richmond/El Sobrante area.

Summary of Feedback Received:

The feedback shows there is general opposition to the inclusion of warehouses, storage, and distribution in the plan area. Concerns include the absence of human-scale interaction and potential impediments to the development of denser housing. Residents also oppose the potential introduction of truck traffic into the residential area that might accompany certain industrial uses. There appears to be more support for research & development , biotech, healthcare, and mixed-use developments. These options are viewed as potential employment generators that align more closely with the community's desires.

Retail
• Would prefer to see community centered spaces and small businesses. • Would also like to see walkable retail; a walkable main street. • Restaurants
• Would like to see restaurants and cafes that are walkable from existing neighborhoods in the area.
• It would be great to have the kind of retail like in New York City in the Hilltop area, such as salons, theaters, and more restaurants.
• Retail will be good for new residents.
• Would like small retail businesses included so that people are able to buy things and enjoy their day.
• Malls are dead. Would putting large floor plate retail back in this area be successful? • Do not want to create pollution from people coming and going straight from the highway to large floor plate retail uses on the site.
• Do not want large plate commercial, such as Costco, as they are too big and require lots of parking which could limit other types of businesses. • Based on a survey that was conducted in the neighborhood, 96% of the respondents wanted to see Costco in the development. Costco could help make the site a destination and support other uses.
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11 • It would be good to have Costco as an anchor store to draw in the crowds and support the other kinds of uses that the community wants. It would be a shame to lose the interest that Costco has already expressed in the site. • It would be nice to have Macy’s back in the area.
• It is hard to attract businesses to Hilltop because even small businesses have a hard time staying open there. Fear that if small businesses and higher end retailers don’t come to the area less desirable uses such as marijuana dispensaries will. • The Hilltop area is mostly housing and so adding more housing without amenities will result in new and existing residents having to leave the community to access amenities. • Most of the area west of I-80 is residential and people have to go far across town or to other communities for entertainment, restaurants, and retail. • Healthcare services such as vision, dental, urgent care would be good uses for this community.
• The site would be the perfect place for transit considering the housing and schools that are nearby.
• This area is underserved and needs a new library.

Summary of Feedback Received:

Some residents favor community-centered spaces, walkable retail, and small businesses while opposing large, parking-intensive retailers, which they fear may generate pollution and outcompete small businesses. Conversely, some participants are in favor of having larger floor plate stores, like Costco, that can serve as anchor tenants to attract a larger pool of patrons, patrons who could also support smaller businesses located in the plan area. 57% of poll respondents are in favor of having both small and larger floor plate retail in the plan area.

Housing Density
• The mall site density could be reduced and the density in the eastern portion of the site could be increased, if it would help spur development.
• Support reducing density at the mall site and increasing density in the eastern portion of the Specific Plan Area.
• No high-rise development right across the street from existing residential uses. • We have enough housing; we need more entertainment and restaurants. • The housing density should be kept at about 20 dwelling units per acre. We want the area to continue to feel like a town and don't want to make a micro-city with housing on top of housing.
• Would rather keep the current zoning standards at the mall site if this means getting something rather than nothing.
• Would like to see the Hilltop mall site be used to help solve the housing issues in Richmond.
• A mix of densities would be best.
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12 • Would like a mix of densities like the Hilltop Village. • Supportive of townhomes.
• More townhouses are favored because they bridge the gap between apartments and single-family homes. They demand less maintenance than single-family homes and contribute to community-building and a more communal atmosphere. • When discussing housing, the timeline for development should be covered. • Developments need to provide 10% affordable housing.
• It is difficult to conceptually make the decision.
• Providing local examples of housing densities would help with decision making.

Summary of Feedback Received:

Feedback regarding changes in density within the plan area zones varied. Some participants supported a reduction in density at the mall site (parcels designated as Mixed-Use Commercial, Activity Center [CM-5]) and an increase in density in the eastern portion (parcels designated as Regional Commercial [CR]), as long as both areas adopted a mixed-density approach and avoided high-rise developments across from existing lower-density housing. Other participants would like to see new residential consistent with existing neighboring developments, prefer not to introduce higher-density housing, and expressed interest in having entertainment and restaurant uses integrated instead. Participants also expressed challenges in providing feedback on housing density due to difficulty visualizing different density levels and understanding how future residents would access amenities. 786

13 Questions
During the Workshop, the questions outlined below were raised. The following are responses to those questions.

1. Is it possible to implement a phased approach, starting with a small anchor project, to gain a better understanding of what suits the area? Are there plans to consider a phased approach that allows the community to make some progress and assess its suitability for the area?
• Given the scale of the plan area, development will most likely occur over several phases over a period of time. Initial development in the early phases may act as catalytic projects that may spur additional development in the plan area, further activating the site. Refer to the response in Question #3 for additional information on development timeline.

2. Is there a specific action required from the City Council to initiate the next steps in the process?
• No specific City Council action is anticipated in the upcoming study session (date to be determined); however, the City team in this study session will request Council feedback on the land plan components.

3. What is the timeline for development, could it be 0-5 years? • The timeline for development will depend on the preferred land use plan as well as the density and intensity of the uses in that plan. Changes to the market will have impacts on the development timeline as well.

4. Does the City have any plans for public and/or community space in the Hilltop area? • Through outreach conducted, the City team understands this use has been a highly desirable feature for the plan and the team will take this into consideration as the land plan is being shaped.

5. Is there going to be any more community engagement opportunities, or is this it? • Community members and stakeholders may participate in the upcoming study sessions to provide feedback. The study session with the Planning Commission is scheduled for 11/16/23 and a date has not yet been confirmed for the City Council study session. These details will be displayed on the project website (https://hilltophorizon.com/), under the Events section.

6. Where can we find information regarding the dates and logistics for upcoming study sessions? Will this information be available on the Hilltop Horizon website? • See response to Question #5 above.

7. For local retailers and businesses, which spaces are least expensive? 787

14 • The cost to rent commercial spaces in the plan area varies and is dictated by the landlord. Factors such as economics, location, and property can affect rent prices.

8. Is the Hilltop cinema in the project area?
• No, Cinemark Century, which is located off Klose Way and east of the plan area, is located outside the plan area.

9. Rezoning would be required to have industrial uses, so if it is rezoned, wouldn’t it be up to the developer to do what they want with it? How does zoning work? • No, the developer will need to comply with the standards and regulations for industrial if a rezoning to allow industrial were to be approved by City Council. The standards and regulations for this use along with all other uses in the plan area will be developed by the City team and incorporated into the Hilltop Horizon Specific Plan based on feedback. Zoning allows local governments to regulate development within the jurisdiction.

10. What do the different housing options mean for affordability? Does the price remain the same regardless of dwelling units per acre?
• The City has an Inclusionary Housing Ordinance that requires developers to provide anywhere between 7-10% of the dwelling units in residential developments be made available to very low, low, or moderate-income households, dependent on whether the project is an ownership or for rent development. Therefore, projects with more dwelling units within a parcel (higher density residential such as multi- story apartments and condominiums) would yield more units affordable to very low, low, or moderate-income households, than a lower density project would (e.g., single family detached and attached homes). Home prices vary and can be influenced by such factors including location, property size, and development amenities.

11. How can Hilltop be used to help solve the Richmond Housing plan? • Integration of more housing in the plan area, affordable to individuals and families with different income levels, can help meet some of the City’s housing goals.

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Richmond City CouncilDecember 5, 2023

Richmond City Council
December 5, 2023